Extraordinary 24 hours has massive implications for Australian oil and gas industry

The Australasian Centre for Corporate Responsibility (ACCR) is welcoming news out of the US and Europe overnight where shareholders have voted strongly against management at Chevron and ExxonMobil, and a Dutch court has ruled against Royal Dutch Shell.

• A Dutch court has ruled that Shell must reduce its global emissions (Scopes 1+2+3) by 45% by 2030 (based on 2019 levels), in a case filed by Friends of the Earth;
• 61% of Chevron shareholders supported a resolution filed by Follow This calling on the company to set targets to reduce all of its emissions, including Scope 3;
• At least two and possibly three directors nominated by activist hedge fund Engine No. 1 have been elected to the board of ExxonMobil.

Commenting on the news, Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“This news is nothing short of extraordinary, and it will have massive implications for the Australian oil and gas industry.

“Chevron, ExxonMobil and Shell are three of Australia’s largest oil and gas producers, and therefore three of our largest carbon polluters.

“All three companies will now be under enormous pressure from both shareholders and the wider public to cut emissions, and cut them fast.

“Cutting Scope 3 emissions means cutting exploration and production. There is no amount of technological fixes or carbon offsets that can accomodate the emissions from the oil and gas that these three companies produce.

“Following the IEA Net Zero report last week, the Australian oil and gas industry is on notice: cut emissions and cut production. BHP, Origin Energy, Santos and Woodside would be wise to act before shareholders and courts force them to.”

Background

• Royal Dutch Shell majority owns Queensland Curtis LNG and the Prelude Floating LNG facility in the Browse Basin. It is also a JV partner in the Woodside-operated North West Shelf and part-owns Arrow Energy, which just last year reached FID on a new gas project in the Surat Basin in Queensland.
• Chevron majority owns and operates the Gorgon LNG facility, the Wheatstone LNG facility and is a JV partner in the Woodside-operated North West Shelf
• ExxonMobil is a joint venture partner in Gorgon, and is the joint owner and operator of the Bass Strait gas field.