Oil majors reduce low‑carbon spending to invest in hydrocarbons over energy security concerns
New Delhi, June 20
Global oil majors are cutting back on low‑carbon investments and refocusing on conventional oil and gas investments due to energy security concerns from geopolitical conflicts, a report said on Saturday.
The report from Equirus Securities said combined low‑carbon spending by seven global oil supermajors fell to the lowest level since 2019 at about $8.3 billion in 2025 from around $24 billion in 2024.
Meanwhile, their investments in oil and gas projects have risen, marking the first time spending on low‑carbon initiatives have declined while hydrocarbon investments increased.
Norwegian multinational energy company Equinor has revised its oil and gas production outlook, withdrew its renewable‑capacity target and approved a NOK 40 billion investment to expand production from Norway's Troll gas field, which supplies nearly 30 per cent of Europe's gas demand, the report noted.
London-based energy company BP has also accelerated its strategic pivot towards conventional energy, increasing its focus on upstream growth and targeting production of more than one million barrels of oil equivalent per day from its US portfolio by 2030.
The United Arab Emirates (UAE) plans to increase crude oil production beyond 5 million barrels per day and has announced cumulative investment commitments exceeding $200 billion by 2030, the brokerage said.
The report mentioned the global energy landscape increasingly moving towards "energy addition" rather than "energy substitution", due to growing electricity demand from artificial intelligence, data centres, industrialisation and emerging economies.
"LNG, nuclear power, power grids and conventional fuels are increasingly being added alongside renewable energy sources to meet rising demand rather than replacing hydrocarbons altogether," the report said.
Consequently, hydrocarbons are likely to remain an important part of the global energy mix for longer than previously anticipated even as renewable-energy deployment continues to expand, the report added.
— IANS
Reader Comments
Exactly the reason why India should focus on nuclear and hydro too. We saw what happened with European gas prices after the Ukraine war - we can't be dependent on imported LNG or oil forever. "Energy addition" makes sense for our growing needs.
But look at the numbers - $24 billion to $8.3 billion in one year? That's a massive drop. AI and data centres are eating up electricity like anything. India's own data centre boom will need reliable power, not just intermittent solar. Practical thinking, though disappointing for green activists. 🤷♂️
I appreciate the realism here. India can't afford to be dogmatic - we need affordable energy for our millions still in poverty. But the government should use this as a wake-up call to accelerate domestic renewables and EV adoption. No point following the West's boom-bust cycle.
Disappointed but not surprised. Climate commitments always get sacrificed when there's a crisis. The UAE pumping $200 billion into oil while hosting COP28 was the biggest joke. As an Indian, I hope our Oil Ministry doesn't use this as an excuse to delay our own renewable targets. 😤
This is actually smart from a national security perspective. Look at Europe - they panicked and now buy expensive LNG from wherever they can. India should use its own coal, gas, and ramp up nuclear while continuing solar investments. "Energy addition" is the right strategy for a developing nation. 👍
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