Oil & Gas

In 2021 we have seen continued global climate change exacerbated disasters; from California fires to German floods. The IPCC AR6 report, updated from 6 years ago,  has clearly stated that GHG concentrations are due to human activity and they are warming the Earth.  At the same moment, we have direct guidance from the IEA in their Net Zero by 2050 report on the need to reduce fossil fuel use and decarbonize the global economy over the next 15 years.

In 2020, the world used ~93 million barrels of petroleum liquids per day, which was a Covid related decline,  but growth is expected to return for the foreseeable future of 2-4% per year.  Add to that nuclear energy, natural gas, and coal, and top it off with the small, but growing, renewables sector. Without sufficient energy, and for the near future oil and gas, the global economy would come to a disastrous halt, and further billions of people would be in poverty. While there are both commercial and novel solutions to replace these critical commodities in some product markets, the new capital and scaled deployment needed is in the trillions of dollars, with near equivalent write-offs required for stranded traditional infrastructure. To help ensure energy companies can transition to low-carbon fuel technologies that are not currently in their portfolio, they need a way to maintain cash flow from the existing business.

Now is the time for energy companies to move rapidly to transform their asset base through new technologies that reduce the operational greenhouse gas footprint through the integration of renewable power, CO2 Capture & Utilization/Storage (CCUS), and increasing operational efficiency. Hydrogen and hydrogen carrier fuels like ammonia will also need to become commercially prevalent in many sectors, especially shipping, chemicals, steel, and seasonal energy storage.

Climate Impact Capital enables companies to participate in the energy transition and efficiently invest their capital in technologies that have the potential for global impact.