Firering Strategic Minerals: From explorer to producer. Watch the video 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 majors' climate call exposes U.S.-Europe rift on carbon pricing

Wed, 03rd Jun 2015 10:42

* U.S. and European majors have held talks for jointinitiative Exxon wants carbon tax to be revenue-neutral

* European majors acted together more quickly

LONDON, June 3 (Reuters) - The failed attempt by the world'soil majors to speak on climate change action with one voice haslaid bare disagreement between U.S. and European companies onputting a price on carbon.

The world's top oil companies have struggled for years toform a joint front in the face of growing criticism for nottaking leadership against climate change.

This week's letter calling for a global carbon pricing byEurope's Statoil, Total, BP, Shell as well as ENI and BG showed firstsigns of such an agreement, albeit without the support of U.S.peers Exxon Mobil and Chevron.

Setting a price for each tonne of carbon that emittersproduce is meant to encourage companies to adopt cleanertechnologies and shift away from using fossil fuels, primarilycoal.

"While we have had discussions with European majors, and wewish them well, we don't believe we need to join this scheme,"said Exxon Mobil Vice-President Robert Franklin at an industryconference in Paris on Tuesday.

Another source confirmed Chevron had also been approached tojoin the initiative but that there was no enthusiam for theproposal, saying a domestic U.S. agreement on carbon pricing wasstill "light years" away.

Nonetheless, Exxon Chief Executive Rex Tillerson said at anOPEC seminar in Vienna on Wednesday if a carbon tax was imposedit had to be revenue-neutral as most economies around the worldare unable to shoulder the cost burden of a carbon tax.

Separately, Chevron and Exxon both work with trade groupInternational Petroleum Industry Environmental ConservationAssociation (IPIECA) to develop a common position for climatechange mitigation.

The IPIECA said on Tuesday it will put out a consensus viewfrom its members on carbon pricing later this month.

"ALL IN IT TOGETHER"

For Europe's oil majors, under growing pressure to actagainst climate change, introducing carbon price systems wherethey are lacking is a more pressing issue.

At home, they are already subject to the European TradingSystem that puts a market price on every tonne of carbon emittedand ties national governments to legally binding targets toreduce emissions.

"We got together as a group in Europe very quickly and madea lot of progress in a short period of time," said BP ChiefExecutive Bob Dudley at the same event.

After months of discussions that started at the WorldEconomic Forum in Davos in January and continued at a roundtablemeeting of chief executives in Oslo, the European companies'joint statement was finally agreed at last month's meeting ofthe Oil and Gas Climate Initiative (OGCI) in Paris, a forum foroil majors created last year ahead of UN climate talks thisDecember, sources said.

"There's a recognition that we're all in this together tosupport carbon pricing as an element of working towards fightingagainst climate change," said another source at one of thecompanies involved.

Total Chief Executive Pouyanne said he was still in talkswith the two U.S. majors and that he hoped one of them wouldjoin the European initiative soon.

The OGCI, which includes oil companies from across theglobe, is expected in the coming months to release a report onthe group's action plan to combat climate change, sources said. (Reporting by Oleg Vukmanovic, Michel Rose and Andrew Callus inParis; Marc Jones, Ron Bousso and Karolin Schaps in London;Writing by Karolin , editing by William Hardy)

More News
30 Nov 2021 17:33

UPDATE 3-U.S. security review stalls sale of Shell Texas refinery to Mexico's Pemex

(Updates with comment from congressman critical of sale)By Erwin SebaHOUSTON, Nov 30 (Reuters) - A U.S. national security review has delayed the sale of Royal Dutch Shell's controlling interest in a Texas refinery to Mexico's national oil company, ...

Read more
30 Nov 2021 17:33

UPDATE 4-U.S. security review stalls sale of Shell Texas refinery to Mexico's Pemex

(Adds comment from Pemex source)By Erwin SebaHOUSTON, Nov 30 (Reuters) - A U.S. national security review has delayed the sale of Royal Dutch Shell's controlling interest in a Texas refinery to Mexico's national oil company, Petroleos Mexicanos (Pe...

Read more
30 Nov 2021 17:33

UPDATE 1-Shell Deer Park, Texas, refinery sale delayed pending regulator's approval

(Adds details, background)HOUSTON, Nov 30 (Reuters) - The sale of Royal Dutch Shell's controlling interest in the joint-venture Deer Park, Texas, refinery to partner Petroleos Mexicanos (Pemex) has been delayed pending approval by the Committee on...

Read more
30 Nov 2021 17:33

UPDATE 2-National security review stalls sale of Shell U.S. refinery to Mexican state oil firm

(Changes headline, recasts lead, adds no Pemex immediate comment, CFIUS declined to comment, remarks by U.S. representative)By Erwin SebaHOUSTON, Nov 30 (Reuters) - A national security review has delayed the sale of Royal Dutch Shell's controlling...

Read more
30 Nov 2021 16:51

Shell Deer Park Texas refinery saie delayed pending CFIUS approval -company

HOUSTON, Nov 30 (Reuters) - Royal Dutch Shell Plc said on Tuesday a delay in approval from the federal Committee on Foreign Investment in the United States (CFIUS) has delayed the sale of its controlling interest in a joint-venture refinery in De...

Read more
30 Nov 2021 16:03

Date for sale of Shell Deer Park, Texas refinery to Pemex pushed back -source

HOUSTON, Nov 30 (Reuters) - The date for closing the sale of Royal Dutch Shell Plc's controlling interest in the joint-venture Deer Park, Texas, refinery to partner Petroleos Mexicanos (Pemex) has been pushed back until the deal receives federal ...

Read more
30 Nov 2021 11:52

Oil firms face workforce crunch as renewables beckon -survey

By Ron BoussoLONDON, Nov 30 (Reuters) - The oil and gas industry risks a huge workforce shortage as more than half of workers in the sector seek to move into the renewable energy industry, a survey published on Tuesday showed.The survey conducted ...

Read more
30 Nov 2021 09:35

Kremlin: new gas transit deal talks with Ukraine hinge on gas demand in Europe

MOSCOW, Nov 30 (Reuters) - Talks on new gas transit deal with Ukraine depend on demand for the Russian gas in Europe and availability of buyers, Dmitry Peskov, Kremlin spokesman, told reporters on Tuesday.The current transit deal expires after 202...

Read more
30 Nov 2021 09:01

LONDON MARKET OPEN: Stocks resume slide as Omicron optimism flounders

LONDON MARKET OPEN: Stocks resume slide as Omicron optimism flounders

Read more
29 Nov 2021 17:03

LONDON MARKET CLOSE: Stocks attempt to rebound from Omicron rout

LONDON MARKET CLOSE: Stocks attempt to rebound from Omicron rout

Read more
29 Nov 2021 12:18

LONDON MARKET MIDDAY: FTSE 100 bounces 80 points as Omicron fears ease

LONDON MARKET MIDDAY: FTSE 100 bounces 80 points as Omicron fears ease

Read more
29 Nov 2021 09:53

UPDATE 2-FTSE 100 rises after Friday's rout, BT Group jumps on M&A report

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Carnival, Wizz Air regain ground* Amigo slumps on plans for equity raise* FTSE 100 up 0.9%, FTSE 250 adds 1.0% (Updates to close)By Bansar...

Read more
29 Nov 2021 08:51

LONDON MARKET OPEN: FTSE 100 rebounds but Omicron uncertainty lingers

LONDON MARKET OPEN: FTSE 100 rebounds but Omicron uncertainty lingers

Read more
26 Nov 2021 17:05

LONDON MARKET CLOSE: Dark mood on Black Friday as variant fears bite

LONDON MARKET CLOSE: Dark mood on Black Friday as variant fears bite

Read more
26 Nov 2021 12:11

LONDON MARKET MIDDAY: Red Friday amid fear of new Covid strain

LONDON MARKET MIDDAY: Red Friday amid fear of new Covid strain

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.