Sustainability, Energy Transition, ESG | Weekly Thematic

Oil and Gas Have The Cash – How Much Goes To Energy Transition?
January 12, 2023
Companies Mentioned:
ExxonMobil, Chevron, Occidental, Shell, bp, TotalEnergies, BASF, Dow, Hanwha, Aramco, ADNOC, Neom, Air Products, Aker Carbon Capture, Tesla
Commodities Mentioned:
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly “CRETER” (Climate etc.)

Oil and Gas Have The Cash – How Much Goes To Energy Transition?

  • Redirecting oil and gas profits to energy transition-led investments makes sense in concept – creating a high return on investment backdrop would open floodgates.
  • Taxation is not the answer. The capital allocation process should be efficient, and governments are bad at this. The Middle East is moving – so should the US.
  • Chemical companies are looking at direct investment in power generation to reach decarbonization goals – the same logic should apply to cash-rich oil and gas.
  • Recycling is becoming more of a focus as the economics look less attractive – we see consolidation and more acceptance of chemical recycling as likely outcomes.
  • While we see plenty of R&D in Hydrogen in the West and a desire to not let China dominate hydrogen equipment etc., IP has only slowed China in other areas.

See PDF below for all charts, tables and diagrams

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