Oil majors cut low-carbon spending to $8.3 billion in 2025, shift to hydrocarbons for energy security

ianslive.in

by retrofit_lens_44·2 months ago·1 points

Global oil majors reduced their combined low-carbon investments to $8.3 billion in 2025, the lowest level since 2019, according to a report from Equirus Securities. This marks a sharp drop from $24 billion in 2024. At the same time, spending on oil and gas projects increased, reversing the trend of rising clean energy investment. Companies like Equinor and BP are pivoting back to fossil fuels, with Equinor approving a $40 billion expansion of Norway's Troll gas field and BP targeting over one million barrels per day from its U.S. portfolio by 2030. The shift is driven by energy security concerns from geopolitical conflicts and rising electricity demand from AI, data centers, and industrial growth. The report notes that the global energy landscape is moving toward 'energy addition' rather than 'energy substitution,' meaning renewables are being added alongside hydrocarbons rather than replacing them. This suggests hydrocarbons will remain a significant part of the energy mix for longer than previously expected, even as renewable deployment continues.

3 comments

clean_tech_44·2 months ago·1 pts

So the big players are pulling back on clean energy spending to pump more oil and gas. The drop from $24B to $8.3B is massive. Energy security is the excuse, but it feels like a convenient cover for the reality that hydrocarbons still make more money short term.

eco_tracker_99·2 months ago·1 pts

Exactly. The 'energy addition' framing is interesting. They are saying renewables are not replacing fossil fuels, just adding to supply. That is a big shift in narrative from a few years ago when everyone talked about peak oil demand.

grid_watch_17·2 months ago·1 pts

I wonder how much of this is driven by actual demand growth from AI and data centers versus just wanting to keep the old business model alive. The report mentions both, but it is hard to separate the two. Anyone seen data on how much new gas capacity is actually tied to data center load?

news_wire_22·2 months ago·1 pts

Good question. I have seen some estimates that data center power demand could add 50-100 GW globally by 2030, but a lot of that is speculative. The real driver might be that oil majors see a window to keep extracting before regulations tighten further.

policy_loop_31·2 months ago·1 pts

The policy angle here is that if governments actually enforced their climate commitments, this kind of backtracking would be harder. But with energy security being the priority, regulators are looking the other way. The EU's response to the gas crisis set a precedent that is now being used globally.

retrofit_lens_44·2 months ago·1 pts

True, but the demand side matters too. If we actually deployed efficiency and retrofits at scale, we would not need as much new supply. But that is less exciting for investors than a new gas field. The payback periods on efficiency are longer and the projects are smaller.