Wednesday, March 16, 2022

War a bonanza for fuel corporations

 


Oil and gas companies are facing a potential bonanza from the Ukraine war, though few in the industry want to admit it.

 "There is going to be a very high price for oil for a very long time, and even the prospect of physical shortages.”  said Robert Buckley, head of relationship development at Cornwall Insight, an energy analysis company.

Oil prices have leapt dramatically, to more than $130 a barrel, sending petrol prices in the UK to more than 155p a litre, while gas prices have also surged.

Luke Sussams, of Jefferies investment bank, said: “The high-price environment is likely to last a long time..."

Big oil and gas companies are now awash with cash.

Green campaigners warned that oil and gas companies were using the Ukraine emergency to further their own interests, by encouraging governments to prioritise oil and gas production and make decisions now on investments that would have little impact on the current crisis but would vastly increase fossil fuel use for years to come.

Marc van Baal, of Follow This, a group of 8,000 green shareholders in oil and gas companies, said: “The leaders of oil and gas companies really have shown in the last years that they want to hold on to their old business model. This is what they understand – turning hydrocarbons into petro-dollars. So I am afraid this is what they are telling governments they should do.”

Tessa Khan, director of Uplift, which campaigns to end North Sea fossil fuels, said: “It’s shameful that oil and gas companies, some of whom have profited from their Russian partnerships for years, now seek to use this humanitarian crisis to further their interests. The fact that they are still being listened to by governments, the UK’s included, is beyond belief.”

Lori Lodes, executive director of Climate Power, a campaigning group in the US, said: “More drilling in more places isn’t a short-term fix, it’s a long-term problem that only makes oil and gas CEOs richer and locks us into more dependence on dirty, unreliable, expensive and volatile fossil fuels.”

Oil and gas companies are looking at a bonanza from the Ukraine war | Environment | The Guardian

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