Major oil companies are dumping their green promises faster than last year’s fashion. BP, Shell, and ExxonMobil have all scaled back renewable projects while ramping up fossil fuel operations. Why? Cash talks. With oil prices delivering fat profits, shareholders want dividends, not carbon offsets. The Permian Basin is booming again, and Arctic exploration is back on the table. So much for saving the planet when quarterly earnings are at stake.
While fossil fuel giants once trumpeted ambitious climate goals with flashy PR campaigns, major oil companies are now quietly retreating from their green commitments. BP has slowed its renewable rollout. Shell cut clean energy spending targets. Even ExxonMobil abandoned its algae biofuels program—you know, the one from those heartwarming commercials.
What happened to all those bold promises? Money happened. Oil prices are volatile, and green energy projects don’t offer the fat profit margins of traditional drilling. Shareholders want dividends, not carbon offsets. And turns out, decarbonization costs more than the glossy sustainability reports suggested. Who knew?
Instead of going green, Big Oil is going back to basics. New drilling in the Permian Basin. Fresh offshore projects in the Gulf of Mexico. Even renewed interest in Arctic exploration and oil sands. These companies aren’t pivoting away from fossil fuels—they’re doubling down. The industry is poised to benefit from Trump’s promise to expedite fossil fuel project approvals. Meanwhile, Greenpeace Canada’s report exposes the deceptive greenwashing tactics these companies employ to maintain their social license.
The emissions targets are getting the axe too. BP dropped its 40% production cut target. Shell backed away from its emissions intensity reduction goals. ExxonMobil won’t touch those pesky Scope 3 emissions with a ten-foot pole. It’s almost like they never really planned to follow through.
The political climate isn’t helping. With the new Trump administration, regulations are facing rollbacks. And international climate agreements? They’ve got all the enforcement power of a strongly worded letter.
Meanwhile, the lawsuits pile up. Greenwashing accusations abound. Carbon offset programs face intense scrutiny. The public isn’t buying the “net-zero” sleight of hand anymore.
Oil executives are stuck between a rock and a hard place. Employees question company values. Activists protest outside headquarters. Consumers threaten boycotts. This retreat comes despite the fact that renewable energy now generates 30% of global electricity and is cheaper than coal in many markets.
But quarterly earnings calls wait for no one. And when forced to choose between climate commitments and profit margins, Big Oil’s decision isn’t exactly surprising. Green promises make for great PR until they hit the balance sheet. Then they fade faster than a bumper sticker on a gas-guzzling SUV.
