ExxonMobil, the world’s biggest publicly listed oil company, issued its annual long-term outlook on the world energy scene today. It provides a lot of information worth thinking about as the world works toward curbing carbon emissions at Copenhagen. First off, global energy demand in 2030, which is the year it looks out to, will be almost 35 per cent higher than in 2005.
But, beyond that, and possibly most important, is that that number would be a lot higher if it were not for energy efficiency gains already being racked up.
FT Energy Source is posting a daily question for our panel of expert commentators. Below, guest panellists Vivienne Cox of Climate Change Capital, Mindy Lubber of the Investor Network on Climate Risk, Jeremy Leggett of the Global Observatory, Julian Morris of the International Policy Network, Lord Browne of the Royal Academy of Engineering and David Jones of Havas respond to today’s question:
The offers countries made on emissions reduction prior to Copenhagen appear to be insufficient to prevent a 2-degree global temperature rise. Should industrialised nations or developing countries be expected to raise their offers first?
Vivienne Cox: This should not be a question of who blinks first because this is not an I-win-you-lose negotiation. Everyone has to understand that we are all in this together and we have to stop pretending it is a stand-off just because that is how it usually is. Cooperation has got to be the survival strategy because there is an obvious mutual interest in solving the problem. That will then allow business to do what it does best – invest across borders. We don’t want to see any politician claiming victory for their own narrow interests. They have to be bigger than that.
Mindy Lubber: Industrialised countries need to move first primarily, but not exclusively, because you have to fish where the fish are. Those are the countries where the bulk of emissions are generated. Those are the largest historical emitters by far – a fact that strongly implies an obligation to swiftly act. And those are the places where the low-hanging fruit of big emission reductions, especially through enhanced energy efficiency, are ripest.
ExxonMobil today approved the development of its $15bn liquefied natural gas project in Papua New Guinea, potentially doubling the size of the country’s economy. It is the second final investment decision at a big LNG project this year and goes ahead despite warnings that the world could suffer a gas glut because of the recent drop in demand, especially in the US.
But Exxon and its partners are confident they have lined up customers in Asia, which will receive the gas by 2013-2014 when construction is completed.
On FT Energy Source:
- EPA decision: Climate action from the Obama Administration
- Graciela Chichilnisky, Robert Stavins, Lord Browne, Jeremy Leggett and David Jones on Copenhagen’s outcomes
- Searching for oil in France (sort of)
- Copenhagen diary, Day 1: Hippies, big business and Chavez
- More first day impressions from Copenhagen: Bottled water and climategate
- Grid investment and Rusal in Spot news
Where is the fossil fuel industry in Copenhagen? (Grist)
The myth of clean coal (Popular Mechanics)
Was volatility in the oil price a cause of the 2008 financial crisis? (The Oil Drum)
Three bets the DOE is placing: advanced batteries, designer microbes and CO2 capture (Wired)
Salazar okays Shell’s Chukchi Sea exploration plants – with conditions (RigZone)
E&P construction costs down, operating costs up (Houston Chronicle)
Is Thomas Edison’s model still the right one? (Energy Collective)
Big oil worries about the next boom (Forbes)
It took potential embarrassment on a world stage to get President Barack Obama to act decisively, and he has finally done it. With the Copenhagen conference getting under way, the US Environmental Protection Agency has announced it will begin regulating greenhouse gas emissions.
It was starting to look like the US was going to show up at Copenhagen with little changed since the Obama Administration took over, which would be particularly embarrassing given President Obama had won the Nobel Peace Prize this year for what were deemed his extraordinary efforts to strengthen international diplomacy and cooperation between peoples.
If he could not even get his own people to act to try to curb carbon emissions, what could the US offer the world? Finally something of substance on the topic from the US government.
It is not often that Total, France’s largest oil and gas company, gets to explore for oil at home. But today the company signed a deal with UK-listed Tullow to look for oil in French Guiana, which politically belongs to France even if it lies 7000km from Paris.
Rusal ‘runs out of time’ with listing plan
Oleg Deripaska is likely to have to give up his attempt to raise $2bn (FT)
Felix shareholders approve Yanzhou’s $3.2bn offer
Investors will receive A$18 a share, including A$16.95 in cash from Yanzhou (Reuters)
Secondary issues boost junior miners
Aim-traded companies raised £234m (FT)
PetroChina to Double Production at Domestic Ventures
Output to increase to at least 15m metric tons a year by 2015 (Bloomberg)
Distributors fear rules will harm grid investment
New pricing could strangle vital investment (FT)
OPG doubles interim revenues
Pre-tax profits rose from £2m to £3.5m (FT)
Enoc fears backlash from Dragon’s tail
Shareholders decision could have big implications for Dubai (FT)
Lex: London-istan (FT)