(WoodMac, 31.Aug.2020) — Last week PetroChina became the first national oil company (NOC) in the world to announce a ‘near-zero’ emissions ambition. Principal analyst Max Petrov commented on the event:
“PetroChina’s announcement is illuminating even if details are lacking. It reveals one of the more ambitious paths the company could take to remain competitive and relevant in thirty years’ time. A statement of intent from the world’s largest oil and gas spender and one of the biggest hydrocarbon producers should not be dismissed lightly.
“PetroChina has started to address its ambition on climate change risk mitigation, but not the transition plan. It currently spends approximately $300mn on new energy initiatives, just 1% of overall budget. Management plans to raise this to $500-750mn over the next five years, increasing again to $1.5bn in the second half of this decade.
“But even as absolute spend rise, PetroChina will need to go further given its scale and global reach.Low-carbon investment will need to greatly accelerate beyond 2025 if the company is to get close to its near-zero carbon ambition.”