The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Oil bosses break long climate silence with urgent initiative

Fri, 12th Jun 2015 14:32

* Energy firms accelerate activity ahead of Paris summit

* Need for joint action first touted in Davos in January

By Ron Bousso and Dmitry Zhdannikov

LONDON, June 12 (Reuters) - For an industry used tocautious, long-term evolution, the speed at which leaders ofEurope's biggest oil and gas companies moved to take a jointstand in the climate debate speaks volumes.

Discrete talks in the eyrie of Davos in January led to aspontaneous, light bulb moment on a stage in Oslo in February.The result: a joint statement two months later. The executivesagreed they had to go public, and with alacrity.

Faced with growing pressure from shareholders, vocaldivestment campaigns by the media and advocacy groups, therelooms the critical moment of the United Nations climate summitin Paris in December. The industry campaign will speed up beforethen.

"In the past we thought it was better to keep a low profileon the issue. I understand that tactic, but in the end it's nota good tactic," Shell CEO Ben van Beurden told his peers in aspeech at a black-tie dinner in London in February.

The first signs of a change in tack came in high-level talksbetween industry executives during the World Economic Forum inthe Swiss resort of Davos.

"Climate change has risen significantly as a priority in theagenda of the Oil and Gas industry," according to previouslyunpublished official notes from the governors meeting for oiland gas industries held there.

During a dinner entitled "The Energy-Climate Nexus",executives discussed the need for "long-term planning on climateaction needs to be complemented with 5, 10 and 20 year horizonplanning."

They identified the need to "catalyse a broad businesscoalition from all sectors towards concrete delivery of climatesolutions."

Importantly, the notes added that "there is strong interest(yet not unanimous) in favour of a carbon pricing system" aimedat curbing the burning of the most polluting fossil fuels,mostly coal.

The defining moment came in May when chief executives of BGGroup, BP, Eni, Royal Dutch Shell, Statoil and France's Total drafteda letter urging governments around the world to introduce apricing system for carbon emissions in order to battle theirharmful effect.

The wording of the letter, an unprecedented joint initiativeby European rivals, was discussed discreetly and directly at thehighest level.

Until the very last days before its release, few advisorsand press officers had any inkling of its existence, accordingto company sources.

ON STAGE

A spur-of-the-moment thought gave it conception. It cameduring a questions and answers session with the chief executivesof BP, Shell, Total and Statoil during the Oslo Energy Forum onFeb. 19.

"We were on stage in a panel at an Oslo energy forum and wewere pressed by people in the panel to talk about our views onclimate and what our positions were," BP CEO Bob Dudley toldreporters this week. "On stage, Ben (van Beurden, Shell CEO),Patrick (Pouyanne, Total CEO), Eldar (Saetre, Statoil CEO) and Isaid we should speak with a common voice - why don't we dothat?"

"It came about as simple as that."

The CEOs of Eni and BG joined the initiative in the weeksthat followed. The bosses of ExxonMobil and Chevron opted not to join the initiative, much to the ire oftheir European counterparts.

Climate advocacy groups welcomed the initiative by the sixcompanies for raising the issue of carbon pricing, but also withscepticism from environmental experts who doubt the oilcompanies' intentions. [ID: nL5N0YO335]

The industry also held high-level talks in Paris late in Mayat the first meeting of the U.N.-backed Oil and Gas ClimateInitiative (OGCI) that included members of the national oilcompanies of Saudi Arabia, China and Mexico.

The forum is planned to publish a report ahead of the climate summit in Paris in December which will "highlightpractical actions taken by OGCI member companies to improvegreenhouse gas emissions management and to transition to lowercarbon energy in the longer term."

BP's Dudley said that the increased activity over climatewas aimed at highlighting the industry's position. he said this week.

"We will continue to work more, we'll crystallize ourthoughts because we just pulled ourselves together in the lastthree months," he said. "Between now and December, we will beperiodically putting out some position papers with morespecificity which hopefully could be practically used by thepolicy makers."

"It is not a PR stunt," Dudley said. (Additional reporting by Nina Chestney, editing by WilliamHardy)

More News
25 Jan 2022 17:05

LONDON MARKET CLOSE: Europe follows NY rebound but Fed jitters linger

LONDON MARKET CLOSE: Europe follows NY rebound but Fed jitters linger

Read more
25 Jan 2022 09:47

Capricorn Energy's Egyptian acquisition exceeding expectations

Capricorn Energy's Egyptian acquisition exceeding expectations

Read more
25 Jan 2022 00:01

UK government commits 32 mln pounds for floating wind projects

By Nina ChestneyLONDON, Jan 25 (Reuters) - The British government said on Tuesday it will commit nearly 32 million pounds ($42 million) to fund the development of floating offshore wind projects to help lessen its dependence on gas, the price of w...

Read more
24 Jan 2022 21:23

Lyondell Houston oil refinery sale in focus ahead of investor call

By Erwin SebaHOUSTON, Jan 24 (Reuters) - Chances for a quick sale of LyondellBasell Industries' Houston oil refinery are dwindling with several other refineries competing for buyers, said people familiar with the matter on Monday.The petrochemical...

Read more
21 Jan 2022 19:17

UPDATE 1-Royal Dutch no more - Shell officially changes name

(Adds details, background)By Ron BoussoLONDON, Jan 21 (Reuters) - Shell officially changed its name on Friday, ditching "Royal Dutch", which has been part of its identity since 1907, following plans to scrap its dual share structure and move its h...

Read more
21 Jan 2022 18:48

Shell officially drops Royal Dutch from name

LONDON, Jan 21 (Reuters) - Shell said on Friday it has officially changed its name from Royal Dutch Shell Plc to Shell Plc as part of its plan to scrap its dual share structure and move its head office from the Netherlands to Britain."Shell annou...

Read more
21 Jan 2022 09:38

LONDON BROKER RATINGS: Berenberg ups Rentokil; Citi cuts Computacenter

LONDON BROKER RATINGS: Berenberg ups Rentokil; Citi cuts Computacenter

Read more
21 Jan 2022 08:30

UPDATE 6-Oil majors TotalEnergies and Chevron withdraw from Myanmar

* Another example of Western firms leaving after coup* Had talked with French, U.S. about targeted sanctions* Was not possible to implement them* Sees junta as here to stay (Adds comment by TotalEnergies, details, bullet points)By Benjamin Mallet an...

Read more
21 Jan 2022 08:30

UPDATE 5-Oil majors TotalEnergies and Chevron withdraw from Myanmar

(Adds PTTEP's reaction, Shell)By Benjamin Mallet and Florence TanPARIS, Jan 21 (Reuters) - Oil majors TotalEnergies and Chevron Corp, partners in a major gas project in Myanmar, said on Friday they were withdrawing from the country, citing the wor...

Read more
20 Jan 2022 20:34

Mexico's Pemex says closes acquisition of Deer Park refinery

MEXICO CITY, Jan 20 (Reuters) - Mexican state oil company Petroleos Mexicanos (Pemex) on Thursday said it had finalized the complete acquisition of the Deer Park refinery in Texas from Royal Dutch Shell, its longstanding partner at the facility.Pe...

Read more
20 Jan 2022 19:21

UPDATE 3-Shell to supply crude to Pemex's Texas refinery under long-term pact

* Formal handover completed and new directors installed* Mexico to receive up to 230,000 bpd of gasoline, fuels (Adds transfer boosts Pemex in negotiations with suppliers)By Adriana Barrera and Ana Isabel MartinezMEXICO CITY/HOUSTON, Jan 20 (Reuters...

Read more
20 Jan 2022 19:21

UPDATE 2-Shell to supply crude to Pemex's Texas refinery under long-term pact

* Formal handover completed and new directors installed* Mexico to receive up to 230,000 bpd of gasoline, fuels (Adds statements by Shell, Pemex confirming agreement)By Adriana Barrera and Ana Isabel MartinezMEXICO CITY/HOUSTON, Jan 20 (Reuters) - M...

Read more
20 Jan 2022 17:45

Shell, UK regulators revive talks on North Sea gas field development

By Ron Bousso and Dmitry ZhdannikovLONDON, Jan 20 (Reuters) - Royal Dutch Shell and British regulators have revived talks on developing the Jackdaw gas field in the North Sea as the government struggles with soaring gas and power prices, company a...

Read more
20 Jan 2022 17:26

Pemex taking control of Texas refinery on Thursday, sources say

MEXICO CITY, Jan 20 (Reuters) - Mexican state oil company Petroleos Mexicanos (Pemex) will on Thursday take control of the Deer Park refinery in Texas, after concluding the purchase of Royal Dutch Shell's half of that plant, two people familiar wi...

Read more
20 Jan 2022 17:02

LONDON MARKET CLOSE: FTSE 100 down as BP, Shell and AB Foods weigh

LONDON MARKET CLOSE: FTSE 100 down as BP, Shell and AB Foods weigh

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.