On November 12, 2024, discussions surrounding the global oil industry intensified as concerns over its environmental impact and economic influence came to the forefront. The International Energy Agency (IEA) reiterated the urgent need to transition away from fossil fuels, emphasizing that new oil and gas fields must not be developed if the world aims for net-zero emissions by 2050.
The oil and gas sector, often referred to as 'Big Oil', has been criticized for its significant role in greenhouse gas emissions, which account for over half of all emissions from fossil fuel combustion in 2022. Despite claims of investing in renewable energy and carbon capture technologies, critics argue that these investments represent a small fraction of total capital expenditures.
Recent analyses indicated that the oil industry generated an average profit of $1 trillion annually from 1970 to 2020, with record profits reported in 2022 following the surge in energy prices after Russia's invasion of Ukraine. Shareholders received unprecedented payouts, totaling $111 billion, highlighting the sector's financial power.
Lobbying efforts by the oil industry have raised concerns about their influence on climate policy. Reports suggest that Big Oil has employed strategies to undermine the transition to renewable energy, casting doubt on the viability of alternatives and promoting fossil fuels as essential for energy security.
As the world grapples with climate change, the future of the oil industry remains uncertain. While some companies signal a shift towards sustainable practices, the overwhelming majority continue to explore new reserves, with estimates of 230 billion barrels of untapped oil and gas that could significantly exacerbate global emissions if burned.