The International Energy Agency (IEA) predicts global oil and gas demand will peak before 2030. This contradicts major oil companies like Shell, BP, and Exxon, who plan to expand gas production, posing a significant risk to shareholder value.
The IEA’s 2024 World Energy Outlook that was released today, shows fossil fuel demand declining after its peak in all scenarios, including one with a devastating 2.4°C temperature increase. Despite this, oil majors are betting on the failure of climate policies and their ability to overturn them, pushing for increased fossil fuel consumption against market trends.
The disconnect between IEA projections and oil major investments is deeply concerning. This misalignment threatens our ability to meet climate goals and poses a financial risk to shareholders.
Shareholders must demand that boards reallocate capital towards renewable energy and sustainable technologies. Failure to do so risks stranding assets and diminishing shareholder value as the world transitions to cleaner energy.
It’s time for shareholders to compel oil majors to align with the global energy transition, ensuring a secure and sustainable future.
References
Press release Follow This
IEA World Energy Outlook 2024
