European oil giants’ emission reduction targets compared against performance

European oil giants' emission reduction targets have been compared against their performance in a new report seen by Net Zero Investor.

The research compares the emissions reduction targets against current performance between 2019 and 2022 for Europe's largest oil companies, including BP, Eni, Equinor, Shell and TotalEnergies.

Key findings

Despite higher cash flow, current capital expenditures remain concentrated in upstream production at an average of around $9 bn compared to low-carbon portfolios of $3 bn.

Taken as a share of energy produced, the research estimated that company portfolios will remain around 70-90% in oil and gas production, compared to 10-30% in low-carbon alternatives.

Shell, Eni and TotalEnergies have all plans to increase oil and gas production between now and 2030.

"Companies should clearly articulate where they see opportunities within low-carbon value chains and their expected returns," the report stated. 

The researchers pointed out that BP is alone among its peers to provide its Internal Rates of Return (IRR) figures and guidance on earnings for low-carbon fuels.