Charted: Big Oil's big year
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Major energy companies doubled down on oil and gas in 2024, slowing down — and at times reversing — climate commitments, in a shift they're likely to stick with in 2025.
Why it matters: Big European energy companies that invested heavily in the clean energy transition found their stocks lagging U.S. rivals Exxon and Chevron, which kept their focus on oil and gas, Reuters reports.
- BP and Shell this year sharply slowed their plans to spend billions on wind and solar power projects and shifted spending to higher-margin oil and gas projects.
Between the lines: The big oil companies are focused on meeting customer demand and maximizing shareholder value, per Axios' Andrew Freedman. That has led them to focus more on their core fossil fuel businesses at a time of geopolitical strife.
- They haven't abandoned their forays into cleaner fuels, including through investments in climate tech companies.
- But some of their investments, including bets on hydrogen fuels, haven't panned out — reinforcing their pivot back to what they do best.
Reality check: Doubling down on fossil fuels complicates global efforts to meet the Paris climate targets, which the oil majors have committed to.
The bottom line: Oil companies this year were profitable — but not as profitable as in recent record years, when there were higher oil prices.
