UK not-for-profit think tank Carbon Tracker said Friday major oil and gas companies approved investments of $50 billion for projects not complying with the Paris Agreement.

The research refers to 18 ventures sanctioned over the past year, Kallanish Energy learns.

According to the research, no oil major is investing to support the goals to keep global warming to a maximum of 1.5˚C, while fossil fuel demand will have to fall in order to meet the target.

Only the lowest cost projects will deliver a financial return under these goals, however the 18 ventures mentioned above have a high breakeven price. The risk is to create assets that will never deliver adequate returns, while oil demand could be satisfied with projects having a breakeven price of $40/Bbl.

For instance, the $2.6 billion Aspen project in Canada led by ExxonMobil will require an oil price of over $80/Bbl to deliver a 15% return.

The U.S. giant, along with Chevron, Shell, Bp, Total, Eni, ConocoPhillips and Equinor, is estimated to have spent at least 30% of its investment in 2018 on projects that are inconsistent with the 1.5˚C target.

The companies should cut these investments, even if they implement significant carbon capture and storage technology.

“Oil and gas companies risk wasting $2.2 trillion by 2030 if they base investment decisions on current emissions policies announced by governments, which would lead to 2.7˚C of warming, instead of planning for continued momentum towards a low-carbon world and ensuing reduced demand for fossil fuels,” Carbon Tracker said in a release.

Page: Kallanish Energy