Oil and gas companies continue to invest heavily in the exploration of new fossil resources. According to a report by the NGO Urgewald published on the sidelines of COP29 in Baku (Azerbaijan), the sector spent on average $61.1 billion per year on this activity between 2022 and 2024. These figures contrast sharply with the financial commitments developed countries to help vulnerable nations cope with the impacts of climate change.
The study is based on data collected from 1,769 companies, representing 95% of global hydrocarbon production. These investments are part of a historic record in 2023, with 55.5 billion barrels of oil equivalent produced. The Rystad Energy firm, specializing in sector analysis, confirmed record levels, estimating production at 60.8 billion barrels that same year.
Insufficient environmental commitments
The report compares the sums invested in hydrocarbon exploration and the financial promises of rich countries for the “Loss and Damage” fund, created during COP28 in Dubai. This fund, intended to support the countries most affected by climate disasters, has only received $702 million in pledges, far from the necessary amounts.
Tinaye Mabara, of the Agape Earth coalition, highlights the urgency of reversing this dynamic: “World leaders must make polluters pay and direct that money towards a just transition for all. » This message particularly resonates as 2023 was the hottest year on record, amplifying the effects of floods and hurricanes linked to global warming.
Growing pressure on the industry
According to Urgewald, 578 of the sector’s largest companies, including Saudi Aramco, Qatar Energy, ExxonMobil, Petrobras and TotalEnergies, plan to exploit an additional 239.3 billion barrels of oil equivalent in the next seven years. These projects could undermine global climate goals and worsen environmental impacts.
The NGO calls for urgent measures to curb this expansion, in particular through restrictive tax and regulatory policies. COP29 could play a decisive role in establishing an international framework to direct this funding towards sustainable and equitable solutions.
As discussions continue in Baku, global decision-makers will have to decide between the pursuit of an economy based on fossil fuels and the imperative of a just and inclusive energy transition.
