Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

COP28 Climate Summit: A Moment Of Reckoning For Oil Execs, Or Just Déja Vu?

Published Nov 30, 2023 17:12 Updated Nov 30, 2023 18:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. COP28 Climate Summit: A Moment Of Reckoning For Oil Execs, Or Just Déja Vu?
 
CVX
-2.56%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EEM
-0.22%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XOM
-1.41%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
COP
-2.27%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BKR
-1.77%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-0.46%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Benzinga - by Neil Dennis, Benzinga Staff Writer.

This year’s United Nations Climate Change Conference, or COP28, kicked off on Thursday in Dubai.

Nations expressed renewed commitments to reduce their reliance on fossil fuels — deemed a moment of reckoning for oil companies.

COP28 President and UAE leader Sultan Al Jaber said at the opening plenary on Thursday: “Let history reflect the fact that this is the Presidency that made a bold choice to proactively engage with oil and gas companies. We had many hard discussions. Let me tell you, it wasn’t easy.”

Over the next 12 days, agendas are packed with seminars and discussions on decarbonizing industry, renewable energy, how new technologies will be leveraged to combat climate change and many other topics designed to send shivers down the spines of fossil fuel producers and their investors.

But in reality, will anything have changed for oil and gas-producing nations and companies after this event?

Also Read: Oil Majors – Are BP And Chevron Attractively Valued After Share Price Tumbles?

Share Prices Remain Unmoved

Oil companies heard similar rhetoric at previous COP summits, and their share prices have remained unmoved.

On Thursday, Chevron (NYSE:CVX) was up 0.8%; Exxon Mobil (NYSE:XOM) added 0.7%; and ConocoPhillips (NYSE:COP) gained 0.7% — all more or less in line with the price of oil — with Brent crude up 1.1% and Nymex WTI up 1%. The United States Oil Fund (USO), an exchange-traded fund that tracks the price of light sweet crude, gained 1.3%.

Al Jaber is the chief executive of the UAE’s Abu Dhabi National Oil Company. He was at the center of recent controversy over claims he’d been briefed to advance the interests of the businesses he leads at the summit.

“Sultan Al Jaber claims his inside knowledge of the fossil fuel industry qualifies him to lead a crucial climate summit but it looks ever more like a fox is guarding the hen house,” said Ann Harrison, climate advisor to Amnesty International.

Investment In Carbon Capture

One of the more interesting and controversial topics for later in the week could be discussions about carbon capture and storage (CCS). Although highly controversial, due to its adverse impact on the environment, it is expected to become a $6 billion industry by 2030.

“We expect CCS to have commodity-like margin in the medium to long term. Therefore, we continue to view CCS technology and engineering and construction (EPC) companies as the near-term beneficiaries of potential growth,” said Victoria McCulloch, analyst at RBC Capital Markets.

Among the companies favored by RBC were California Resources Corp (NYSE:CRC), Baker Hughes (NYSE:BKR) and ExxonMobil (NYSE:XOM) — which, in the past few years, has striven to be seen as a net-zero crusader, with a new deal on its methane emissions and plans to start lithium production for EV batteries.

Among the exchange-traded funds tracking the carbon capture industry are: KraneShares Global Carbon Strategy ETF (KRBN), VanEck Low Carbon Energy ETF (SMOG) and iShares MSCI ACWI Low Carbon Target ETF (CRBN).

Now Read: 6 Stocks To Watch As The World Turns To The 2023 UN Climate Change Conference

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

COP28 Climate Summit: A Moment Of Reckoning For Oil Execs, Or Just Déja Vu?
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email