Jun 22, 2022 - Energy & Environment

Oil giants criticized for uneven clean energy investment

Data: IEA; Note: Includes Shell, Exxon, BP and other major oil and gas companies, ADNOC, CNPC, CNOOC, Equinor, Gazprom, Kuwait Petroleum Corporation, Lukoil, Petrobras, Repsol, Rosneft, Saudi Aramco, Sinopec and Sonatrach; Chart: Simran Parwani/Axios
Data: IEA; Note: Includes Shell, Exxon, BP and other major oil and gas companies, ADNOC, CNPC, CNOOC, Equinor, Gazprom, Kuwait Petroleum Corporation, Lukoil, Petrobras, Repsol, Rosneft, Saudi Aramco, Sinopec and Sonatrach; Chart: Simran Parwani/Axios

Oil companies have boosted clean energy investment, but it's unevenly spread in the industry and the sector should parlay big profits into more aggressive initiatives, the International Energy Agency said.

Why it matters: "High prices are generating an unprecedented windfall," IEA said in a new report.

  • "This is a once-in-a-generation opportunity for producer economies to fund diversification activities and for the major oil and gas companies to deliver more diversified spending."

Zoom in: Solar and wind have accounted for the largest investments, with Europe-based multinationals steering the most capital by far.

  • More broadly, a number of companies worldwide — both investor- and state-owned — are also boosting investments in hydrogen, carbon capture and other tech.
  • But plans are generally more ambitious than underlying investments so far, IEA said.

The big picture: That's part of a much wider IEA analysis that shows global energy investment — spanning power and grids, efficiency, fuels and more — is set to rise 8% this year.

  • Nonetheless, "today’s energy investment trends show a world falling short on climate goals, and on reliable and affordable energy."

Read the whole report.

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