Three Trends of Low-Carbon Investment by International Oil and Gas Giants

In 2022, the investment focus of major international oil companies will continue to focus on low-carbon businesses

Judging from the latest investment plans for 2022 and the next five years announced by the five major international oil companies, Exxon Mobil, bp, Shell, Chevron and Total, the companies still maintain cautious investment on the premise of anticipating a recovery in oil prices Attitude, the specific investment amount is replaced by the planned investment range.

It is expected that in 2022 and the next 2-3 years, the investment strategies of major international oil companies will show the following major trends:

Trend 1 In the traditional oil and gas business, more emphasis is placed on improving investment efficiency, the break-even point of projects continues to decrease, and investment will increase slightly

In the environment of persistently low oil prices in the past few years, major international oil companies have gradually explored a low-cost and efficient asset operation and management model.

At the same time, major international oil companies have shifted from pursuing high investment and large-scale assets to streamlining investment and reconciling strategic assets, and investing in assets with perfect infrastructure, low risk, short payback period, low cost and excellent resource endowment concentrated

In 2022, with the growth of the total investment of major international oil companies, upstream investment is expected to increase by about 8% year-on-year, still maintaining a level of about 70% of the total investment

The second trend is firm transformation, and will continue to increase the proportion of low-carbon business investment

High oil prices in the short term will not have a substantial impact on the long-term low-carbon strategies of major international oil companies

The investment of major international oil companies in low-carbon fields is also growing rapidly.

The return on investment of low-carbon business is increasing day by day, and compared with the return on investment of oil and gas business, it has more growth potential and will become an important source of income for major international oil companies in the future

Large international oil companies have laid out low-carbon business earlier, and the profits of low-carbon business are growing rapidly.

The third trend is to pay more attention to improving the relationship with investors and the public, and to maintain the company's financial stability

The development environment of major international oil companies has undergone fundamental changes, and maintaining financial stability and enhancing their attractiveness to investors has become more important areas for major companies