Upstream Access at Risk Amid Climate Crisis

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Future upstream access is at risk in some large Western producing nations as governments get more serious about tackling climate change. In Norway and the UK, there is a recognition across political parties that domestic oil and gas industries must be downsized to reduce greenhouse gas emissions, even as Europe faces an energy crisis with the recent spike in gas and power prices. In the US, climate change remains a divisive issue and questions remain around the Biden administration’s plans to halt oil and gas lease sales on federal lands and waters. The rise of extreme weather events and the upcoming Glasgow summit are prompting some governments to address decarbonization more aggressively and rethink the future roles of their oil industries. The recent “code red” UN climate science report and the International Energy Agency’s (IEA) net-zero roadmap have also factored. The latter suggests that no new oil and gas fields -- beyond those already sanctioned -- would need to be developed for the world to reach net-zero emissions by 2050.

With Brent trading above $85 per barrel this week, calls for Opec-plus to increase supply are increasing.
Thu, Oct 21, 2021
Saudi Arabia, the world largest oil exporter, has committed to a net zero carbon emissions target by 2060.
Sun, Oct 24, 2021
The UN Environment Program says the world is producing too much oil, gas and coal to avoid dangerous climate change.
Thu, Oct 21, 2021