The Problem With Profits

Date: 13/02/23

Are the huge profits from oil and gas discouraging companies from investing in renewables?

While many in the construction industry are struggling to stay afloat, there’s one business sector where profits are flowing in at an unprecedented rate. In recent days, most of the world’s major oil companies have announced breath-taking record profits, with BP doubling its profits to £23bn, Shell posting the highest margins in its 115year history at £32.2bn, and Exxon pushing even higher with profits of £45.2bn for 2022 (that’s over £1,400 per second!).

Yet despite the cash flowing freely, BP also announced the same day that it would be cutting its target to reduce carbon emissions. Although the company says it is investing in the transition to green energy, it is now aiming for just a 20-30% cut in emissions by 2030, rather than the previous aim of 35-40%. It seems that profits are being put before the planet in the rush to make the most of the runaway energy markets.

Renewables getting side lined

You might expect that these incredible profit figures will give the fossil fuel industry more money to invest in alternative energy, but in reality, this is not the case. There is pressure from governments to increase fuel security, following the Russian invasion of Ukraine. This is combined with shareholder pressure to cash in on the rising price of fuel. Together, these pressures mean that many energy companies are investing less in renewable sources, and more in traditional oil and gas exploration.

For example, Exxon has been under pressure from the White House to increase production in order to cut prices for consumers at the pump. In response, the company insisted that it was continuing to invest in new oil and gas projects, despite pressure to shift investments to renewables. The company has increased investment by 38%, searching for alternatives to Russian supplies in places like Guyana and the Permian Basin in Texas and New Mexico.

We need to look at the long term

With Russian announcing today that it will cut oil production further in response to international price caps, it’s only natural that consumers want the energy companies to increase production elsewhere. More fuel, from more secure sources, would certainly help to keep petrol pump and household energy prices down and ensure energy security and availability for the future.

However, this doubling down on fossil fuel production, while completely understandable, will not help the fight against climate change. Renewables, such as solar power and wind turbines, may not offer the kind of quick-fix solutions to the current energy crisis that people are demanding. However, the ultimate cost of companies like BP scaling back its climate targets could be much higher.

Think Hire can help with hybrid power hire

While the world’s biggest companies seem set on a fossil-fuelled future, there’s one company here in the UK that sees things differently. Think Hire are dedicated to delivering renewable energy solutions, such as hybrid power hire, so that companies like yours can play their part in protecting our planet.

Hybrid power hire harnesses the renewable energy of solar panels to deliver clean power for site lighting, eco mobile welfare units and site accommodation, and to power the next generation of electric vehicles and plant. Think Hire may not make billions, but we invest our profits in the very latest renewable hybrid power hire technology. Our mission is to make eco-friendly energy available to as many companies as possible in the construction industry, for road and rail projects, for the events industry and for the commercial sector.

We can’t promise you £1,400 per second in profits, but we can promise you savings in your operational costs if you make Think Hire your renewable energy partner. That’s lower costs, guaranteed, while still caring for the environment.

To find out more, and to see how, unlike BP, you can use hybrid power hire to stay on target for lower emissions, get in touch with our expert team today. 

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