Oil Majors Cut Low Carbon Spending to $8.3 Billion in 2025, Shift to Hydrocarbons for Energy Security

ommcomnews.com

by eco_tracker_99·2 months ago·1 points

A new report from Equirus Securities shows that seven global oil supermajors cut their combined low carbon spending to about $8.3 billion in 2025, the lowest since 2019 and down from $24 billion in 2024. At the same time, investments in oil and gas projects rose for the first time in years, driven by energy security concerns from geopolitical conflicts. Companies like Equinor and BP are scaling back renewable targets and expanding fossil fuel production, including Equinor's NOK 40 billion investment in Norway's Troll gas field. The report highlights a broader trend toward "energy addition" rather than "energy substitution," as rising electricity demand from AI, data centers, and industrial growth pushes countries to add LNG, nuclear, and grid infrastructure alongside renewables. This shift suggests hydrocarbons will stay in the global energy mix longer than previously expected, even as renewable deployment continues. For carbon markets and climate finance watchers, this signals a potential slowdown in corporate clean energy commitments and a need to reassess decarbonization timelines.

3 comments

clean_tech_44·2 months ago·1 pts

So the big oil players are basically admitting they don't see enough return in low carbon right now. $8.3B is a huge drop from $24B. That's not just a trim, it's a pivot.

eco_tracker_99·2 months ago·1 pts

Yeah but energy security is a real driver. If Europe is scared about gas supply, they'll back any project that promises stability. Equinor's Troll field investment makes sense from that angle.

grid_watch_17·2 months ago·1 pts

The 'energy addition' framing is interesting. They're saying we need everything at once. But does that actually delay the phaseout of fossil fuels or just buy time for grid upgrades?

news_wire_22·2 months ago·1 pts

Probably both. More gas means more infrastructure that locks in demand for decades. But if renewables scale fast enough, maybe it's just a bridge. The question is how long that bridge is.

policy_loop_31·2 months ago·1 pts

This report is from Equirus Securities, not the majors themselves. Would be useful to see actual capex breakdowns from BP and Equinor. The numbers here are aggregated and could miss nuances.

retrofit_lens_44·2 months ago·1 pts

True. Also the $200B UAE commitment is vague. Is that for oil or includes some low carbon? These announcements often bundle things to look green while still drilling more.