ExxonMobil, Chevron investors vote for more action on climate change

Yahoo – AFP, John BIERS, May 26, 2021

Shareholders of ExxonMobil will decide whether to replace up to four board
members with supporters of renewable energy investment

Shareholders at ExxonMobil elected Wednesday at least two board members who pledged more aggressive action on climate change, while Chevron investors directed the oil giant to deepen emission cuts. 

The dual meetings involving the two biggest US oil giants showed clear evidence of how addressing climate change has moved from the environmental world into the investor mainstream. 

At ExxonMobil, two board nominees from activist group Engine No. 1 won enough votes to secure board seats. Shareholders also backed a proposal requiring a report on the oil giant's lobbying activities on climate change. 

At Chevron, a majority of investors backed an activist proposal calling on the company to reduce "scope 3" emissions associated with company operations. 

Earlier Wednesday, a Dutch court ordered oil giant Shell to slash its greenhouse gas emissions by a net of 45 percent by the end of 2030 following a challenge launched by environmental group Friends of the Earth. 

Engine No. 1's Gregory Goff and Kaisa Hietala secured enough votes to join ExxonMobil's board, along with Chief Executive Darren Woods and several other incumbent directors who were reelected, said ExxonMobil corporate secretary Stephen Littleton. 

Littleton said the vote was too close to call on whether the other two Engine No. 1 candidates would join the board instead of incumbent directors and that a final outcome may not be known "for some period of time." 

After the results were announced, Woods congratulated the Engine No. 1 candidates and pledged to work with them to meet shareholder expectations. The company had launched a lobbying offensive to re-elect its incumbent board, arguing it was taking meaningful action to address climate change. 

"We've heard from shareholders about their desire to catalyze further progress at ExxonMobil and we are well prepared to deliver," Woods said after the vote. 

'Change is coming' 

ExxonMobil had announced a series of steps on climate change since Engine No. 1 launched its campaign in late 2020, making Wednesday's election contest unpredictable. 

Engine No. 1's Charlie Penner expressed uncertainty about the vote during remarks at the outset of the meeting. 

"No matter what the outcome of this vote, change is coming," said Penner, who noted ExxonMobil's promises made since the insurgent campaign launched late last year that it "cannot easily walk away from." 

The oil company in January established a new "low carbon solutions" business to commercialize carbon capture technology; announced two new board members in March; and earlier this week pledged to appoint two more board members in the next 12 months, one with energy industry experience and one with climate experience. 

ExxonMobil has battled annual meeting fights on climate change for decades, usually prevailing on shareholder resolutions. 

But oil majors are under intensifying pressure to develop more aggressive policies on climate change and embrace renewable energy. 

European rivals such as BP, Royal Dutch Shell and Total have undertaken renewable investments and pledged to attain net-zero carbon emissions by 2050. 

The International Energy Agency earlier this month said all future fossil fuel projects should be scrapped if the world is to reach net-zero carbon emissions by 2050 and stand any chance of limiting warming to 1.5C. 

The report goes well beyond existing policies adopted by the United States and other governments. The Biden administration, for example, has endorsed renewable energy investment, but has not supported an immediate phase-out of new fossil fuel investment. 

Both ExxonMobil and Chevron have announced new environmental initiatives in recent months, while insisting on the need for continued investment in oil and gas development. 

Woods called the recent IEA analysis a "helpful" contribution, saying reducing emissions is a "complex problem and a challenging one" that will require new technology and government policies. 

Shares of ExxonMobil rose 0.7 percent to $58.65 in afternoon trading, while Chevron was flat to $103.85.

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Big Oil confronts possibility of terminal demand decline

Yahoo – AFP, Julien MIVIELLE,  July 5, 2020

Is this the sunset of the oil industry? (AFP Photo/Paul Ratje)

Although crude prices have rebounded from coronavirus crisis lows, oil execs and experts are starting to ask if the industry has crossed the Rubicon of peak demand.

The plunge in the price of crude oil during the first wave of coronavirus lockdowns -- futures prices briefly turned negative -- was due to the drop in global demand as planes were parked on tarmacs and cars in garages.

The International Energy Agency (IEA) forecast that average daily oil demand will drop by eight million barrels per day this year, a decline of around eight percent from last year.

While the agency expects an unprecedented rebound of 5.7 million barrels per day next year, it still forecasts overall demand will be lower than in 2019 owing to ongoing uncertainty in the airline sector.

Some are questioning whether demand will ever get back to 2019 levels.

"I don't think we know how this is going to play out. I certainly don't know," BP's new chief executive Bernard Looney said in May.

The COVID-19 pandemic was in full swing then with most planes grounded and white-collar workers giving up the commute to work from home.

"Could it be peak oil? Possibly. I would not write that off," Looney told the Financial Times.

Summited?

The concept of peak oil has long generated speculation.

Mostly, it has been focused on peak production, with experts forecasting that prices would reach astronomical levels as recoverable oil in the ground runs out.

Owing to the coronavirus, in recent months the concept of peak demand for oil 

has come into vogue (AFP Photo/SCOTT HEPPELL)

But in recent months, the concept of peak demand has come into vogue, with the coronavirus landing an uppercut into fuel demand for the transportation sector followed by a knock-out punch from the transition to cleaner fuels.

Michael Bradshaw, professor at Warwick Business School, said environmental groups are already lobbying to prevent the Paris agreements becoming another casualty of the pandemic, stressing the need for a Green New Deal for the recovery.

"If they are successful, demand for oil might never return to the peak we saw prior to COVID-19," he said in comments to journalists.

The transport sector may never fully recover, Bradshaw posited.

"After the pandemic, we might have a different attitude to international air travel or physically going into work," he said.

'Science fiction'

Other experts say we haven't reached the tipping point yet, and might not for a while.

"Many people have said, including some CEOs of some major companies, with the lifestyle changes now to teleworking and others we may well see oil demand has peaked, and oil demand will go down," IEA executive director Fatih Birol said recently.

"I don't agree with that. Teleconferencing alone will not help us to reach our energy and climate goals, they can only make a small dent," Firol added while unveiling a recent IEA report.

IEA executive director Fatih Biron does not believe that lifestyle changes such as

teleworking will cause demand for oil to decline substantially (AFP Photo/Ye Aung THU)

Moez Ajmi at consulting and auditing firm E&Y dismissed as "science fiction" the idea that a definitive drop in oil demand could suddenly emerge.

He expects a slow recovery in demand even if the coronavirus leaves the global economy weakened.

That weakness would also likely slow adoption of greener fuels.

"It will take time for fossil fuels, which today still account for some 80 percent of primary global consumption to face real competition" from rival energy sources, he said.

Meanwhile, the oil industry could face financing challenges.

Bronwen Tucker, an analyst at Oil Change International, says the industry is now under pressure from investors.

After "a pretty big wave of restrictions on coal and some restrictions on oil and gas, the risks to oil and gas investment right now feel a lot more salient," she said.

The industry is already writing down the value of assets to face up to the new market reality of lower demand and prices.

Royal Dutch Shell said this past week that it will take a $22 billion charge as it re-evaluates the value of its business in light of the coronavirus.

Last month, rival BP reduced the worth of its assets by $17.5 billion.

"This process has further to run, and we expect further large impairments to occur across the sector," said Angus Rodger of specialist energy consultancy Wood Mackenzie.

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A decade after Deepwater, BP faces new existential challenges

“Afraid of Love” + “What’s Wrong Today”, Laguna Hills, California, US(2), Dec 9, 2018 (Kryon Channelling by Lee Carroll)

• Stagnation of the current US Politics: Compassioned (US) leaders will arise in the future
• Shortage of fresh/drinking water: Invention to make salt from salt water magnetic and remove it with water desalination process in high volumes
• Pollution on Earth: 1 - Stop killing the environment! / 2 - The rise of temperature on Earth is “temporary” and is part of the "regular" Watercycle.
• Replacement of current fossil energy source: Use of magnetics based (small/big) engines to produces electricity / free energy
• Plastic pollution in the oceans: Invention to remove the plastics gradually from the oceans

20TH KRYON SUMMER LIGHT CONFERENCE, US (7), June 2-4, 2017 (Kryon Channelling by Lee Carroll) (Text version "The State of the Earth")

"....  A mini ice age is coming. "Kryon, isn't that doom for the planet?"  Many have seen the artist's rendering of major earth cities under ice and all of the other things that go very well with science fiction movies. That's simply a painting of someone's doom scenario, not reality based in the history of the cycle. If you want to know what a mini ice age is like, just flash back in history and study what took place in about 1650. That was a mini ice age. Due to the change in the Gulf Stream (the ocean), the river Thames froze in London. Dear ones, it was cold, but it did not doom the planet. That's a mini ice age.

That's what you're facing, and I'll say it again. If you live in a cold climate, heed this advice: It's going to get colder. Get off the grid! Within the next 15 years, find a way of producing electricity independently or in smaller groups. This can be done neighborhood-wide or separately in homes. You're going to need this, dear ones, because the grid as it exists right now all over the world is not prepared for this coming cold, and the grid will fail. That's not doom and gloom, that's just practical, commonly known information. Your electricity infrastructure is delicate, too delicate. Prepare for a cold spell that may last for a couple of decades. That's all it is. Technology is racing forward to allow this. Don't let your politics get in the way of your survival. ..."

"...  This is controversial. The planet can't just "change the water". It does it instead with a "reboot of life in the ocean" using the water cycle. Watch for evidence of this as it occurs, and then remember this channel. This weather cycle is to refresh the life in the ocean so that everyone on the planet will have needed food from the ocean. Gaia does this by itself, has done it before, and it does it for a reason - so it will not stagnate.

Dear ones, indeed, you have put compromising things into the air and the water, but it has not caused this cycle. We have said for a very long time, stop killing the environment! The reason? It's going to kill you, not Gaia. Gaia is spectacularly resilient and will survive anything you do. However, it is you who may not survive if you continue polluting. All this is starting to change with your awareness, and you're starting to see this and move with it. But Humans are not causing the current weather shift. This will be known eventually.

What is happening has happened before, and it's almost like a reboot for the oceans and it carries a lot of dichotomous events. You're going to see reports of a dying ocean, but at the same time you're going to see unusual reports of too many fish and other sea life in places that were supposed to have a decline. You're going to see the life cycle of the ocean itself start to change and reboot.

The chief player in this renewal is a place you would not expect: Antarctica. I want you to watch for magic in Antarctica. It has always been the core of the refreshing of microbes and other kinds of life in your oceans and it's especially active during these mini ice ages. The process will cause currents under the sea to be filled with new life, delivering it to both hemispheres almost like an under-sea conveyor belt. ..."

"Recalibration of Free Choice"– Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth, 4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical) 8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version)

“… 4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet; again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much…

Water

We've told you that one of the greatest natural resources of the planet, which is going to shift and change and be mysterious to you, is fresh water. It's going to be the next gold, dear ones. So, we have also given you some hints and examples and again we plead: Even before the potentials of running out of it, learn how to desalinate water in real time without heat. It's there, it's doable, and some already have it in the lab. This will create inexpensive fresh water for the planet. 

There is a change of attitude that is starting to occur. Slowly you're starting to see it and the only thing getting in the way of it are those companies with the big money who currently have the old system. That's starting to change as well. For the big money always wants to invest in what it knows is coming next, but it wants to create what is coming next within the framework of what it has "on the shelf." What is on the shelf is oil, coal, dams, and non-renewable resource usage. It hasn't changed much in the last 100 years, has it? Now you will see a change of free choice. You're going to see decisions made in the boardrooms that would have curled the toes of those two generations ago. Now "the worst thing they could do" might become "the best thing they could do." That, dear ones, is a change of free choice concept. When the thinkers of tomorrow see options that were never options before, that is a shift. That was number four.”

THE RELATIONSHIP TO GAIA - April 2010 (Kryon channelled by Lee Carroll)

New Mini Ice Age

"The weather you have today, and all the alarming attributes of it, is a scenario of what was scheduled to happen on Earth anyway. I review again that the weather changes you are seeing prophesied by myself, 21 years ago, are not a surprise. The changes are not caused by the pollutants you put in the air. You call it global warming and that's a nice phrase, and perhaps that will get you to put less pollutants in the air – a very good thing. But what you are seeing in the weather shift today was not caused by Humans putting things into the air. It would have happened anyway in about 300 years."

"We've called this process the water cycle, since it's all about water, not about air. The water is the predominant attribute of Gaia and of the weather cycle you're seeing. More predominant is the temperature of it. The cycle is ice to water and water to ice, and has been repeated on this planet over and over and over. It is not new. It is not exceptional. It is not frightening. But it's a cycle that modern humanity has not seen before, and it's a long cycle that is beyond the life span of a Human Being. Therefore, it tends to be overlooked or not seen at all !"

"In the days of the Lemurians, the water level of the Pacific Ocean was almost 400 feet lower, and that's only 50,000 years ago. [Kryon invites science to check this out – the water level at that time.] That was a water cycle working, and the reason it was lower was due to so much of the water being stored as ice. Today you're going through another water cycle that will eventually lead to cooling. The last one was in the 1400s."

"Science sees that at about 1650. As mentioned, they are so slow there is no remembrance that a Human has of them except in past writings and in the rings of the trees. The time span of the changes is so great that environmental record keeping does not exist in the form that it does today. But you can still look at the rings of the trees and at the striations of the rocks and can generally figure out that a few hundred years ago, you had a mini-ice age. Now you're going to have another one." 

A decade after Deepwater, BP faces new existential challenges

Yahoo - AFP, Véronique DUPONT, April 22, 2020

BP says it has reformed its culture over the past decade to emphasise operational
security and to prevent environmental damage (AFP Photo)

London (AFP) - Ten years after an oil spill that BP's new boss Bernard Looney admits tested the company "to the core", the firm is facing two existential challenges: the collapse of prices and climate change.

It was a decade ago this week that an explosion on the Deepwater Horizon rig in the Gulf of Mexico triggered the worst oil spill in US history, killing 11 employees and ultimately costing the British firm more than $70 billion.

Speaking in February as BP announced plans to go carbon neutral by 2050, chief executive officer Looney said that "we learned some hard lessons we will never forget".

"We remember those lessons in this new decade, where the big challenge for BP is the one the world faces: climate change," he said.

Anglo-Dutch oil giant Royal Dutch Shell has followed suit in pledging to become carbon neutral but the US groups and French firm Total are lagging behind.

Map and factfile on the environmental disaster in the Gulf of Mexico triggered by

 the explosion in April 2010 of BP's Deepwater Horizon oil drilling platform US 

environment energy oil disaster (AFP Photo)

BP says it has reformed its culture over the past decade to emphasise operational security and to prevent environmental damage, for example through a programme to detect methane leaks.

The company's latest figures show an increase in its oil spills from 124 in 2018 to 152 in 2019, but BP puts this down to acquisitions over the period.

The 2020s began amid greater pressure on multinationals to reduce their carbon emissions, from investor demands to dramatic protests by climate campaigners.

The global coronavirus pandemic has brought a new and unprecedented challenge for oil firms, causing a drop in demand that has sent prices plummeting.

The collapse in prices complicates the transition to cleaner energy for oil majors, because cheap oil makes green energy comparatively less attractive.

For campaign group Greenpeace, the choice for the industry is clear: 'Either 

becoming renewable energy companies or ultimately shutting down' (AFP 

Photo/Mark RALSTON)

BP puts almost all of its $15 billion annual investment budget into fossil fuels, although it has acquired stakes in solar panel firms and electric vehicle charging companies worth a total of $400 million.

"Their basic business model hasn't changed," said Bobby Banerjee, professor of management at City, University of London.

"They invest most of their money in gas and oil" because "they're confident there will be demand for oil" in the next 50 to 70 years, he said.

He said for BP, the energy transition was all about shifting from oil to gas, which is still a polluting hydrocarbon.

"The return they get on fossil fuels is not the return they'll get on renewables," he said.

In this file photo taken on June 08, 2010, veterinarians clean an oil-covered brown 

pelican found off the Louisiana coast and affected by the BP (AFP Photo/Saul LOEB)

Changing the model 

Russ Mould, investment director at AJ Bell, said after the Deepwater crisis BP shed some assets and bet on low oil prices in the long run, reducing its costs and making the group more resilient.

But it has huge debts, totalling some $45 billion at the end of 2019, leaving it vulnerable to a sustained drop in revenues.

Looney now faces a dilemma. He must decarbonise the group while preserving its profitability and share price, which has fallen by 40 percent since the beginning of the year, a plunge experienced by many rivals.

He has promised to say more in September about how he will reach his carbon neutral target and is expected to bet on gas, still untested carbon capture technology and renewables.

BP could also take advantage of carbon offsetting schemes, which involve investing in green projects but are heavily criticised by environmentalists.

For campaign group Greenpeace, the choice for the industry is clear: "Either becoming renewable energy companies or ultimately shutting down."

"The crash in the oil market is the closest thing BP and the rest of the global oil industry will get to a dress rehearsal for the transition to come," a spokesperson said.

Related Article:

BP agrees to $20 billion fund for spill costs

Germany looks to step up coal exit timetable

Yahoo – AFP, Tom BARFIELD, January 16, 2020

Germany is exiting coal far too late, campaigners say (AFP Photo/Ina
FASSBENDER)

Frankfurt am Main (AFP) - Bowing to public pressure on climate change, Germany on Thursday promised to speed up its exit from coal power generation and to pay operators compensation in a strategy instantly rejected by environmental campaigners.

With the announcement that coals could be history by 2035, instead of 2038 as previously planned, "the exit from coal begins now, and it's binding," Environment Minister Svenja Schulze told reporters in Berlin.

Chancellor Angela Merkel and premiers from the states of Saxony-Anhalt, Saxony, North Rhine-Westphalia and Brandenburg agreed overnight a "shutdown plan" for the country's power plants using the highly polluting fossil fuel.

The scheme will be written into a draft law set to be presented later this month and ratified by mid-2019.

Meanwhile the government will compensate coal plant operators to the tune of 4.35 billion euros ($4.9 billion) for plants set to fall off the grid in the 2020s alone, Finance Minister Olaf Scholz said.

The payouts "will be spread out over the 15 years following the shutdown" and represent an "affordable and in my view good result," Scholz added.

Giant RWE, with its power stations in North Rhine-Westphalia, will take the lion's share at 2.6 billion euros.

But the group complained that was "well below" the 3.5 billion of losses it expects.

Some 3,000 jobs are set to go at the energy firm "in the short term" and 6,000 by 2030, mostly via early retirement, RWE added.

That represents around 60 percent of RWE workers in the especially dirty brown-coal sector and one-quarter of the company's total workforce.

'Too late!'

Plans to wind down coal power by 2038 have been in the air since last year, and the three-year cut to the timetable did not impress environmentalists.

"Exiting coal is not a technical challenge, but a question of political will... 2035 is much too late!" tweeted Ende Gelaende, a protest group that has organised multiple occupations of brown coal mines.

Thursday's deal lays out for the first time in detail which brown coal plants will be shut down when, beginning with one operated by RWE near the massive Garzweiler open-pit mine in western Germany.

The plan also provides for an end to the razing of the ancient Hambach forest, which had been threatened by another open-cast project and became a symbol of the anti-coal movement.

RWE said more than half of its 2.1 billion tonnes of coal reserves would now remain buried.

But environmentalist group BUND complained that the government's scheme pushes more closures back beyond 2030, keeping some plants running longer than previously thought.

New coal plant

Activists also highlighted that the latest plan will still allow a newly-built coal power plant in the Rhineland known as Datteln 4 to begin operation.

"It's simply absurd," tweeted Luisa Neubauer, a leading figure of Germany's "Fridays for Future" protest movement.

In coal-mining regions, the state plans an "adjustment fund" for workers in plants and mines to compensate them until 2043.

And the coal zones will receive 40 billion euros in support by 2038.

The task of quitting coal has been complicated by Merkel's decision to end nuclear power generation by 2022.

At one-third of Germany's electricity supply, the fossil fuel is the main backstop to sometimes intermittent current from renewables during the transition period.

A plan agreed in December under pressure from demonstrators calls for Germany to reduce output of greenhouse gases by 55 percent compared with 1990's levels.

The country has already admitted it will miss an intermediate target for 2020.