The Key Role of National Companies in the Climate Debate

In the climate debate, the focus is on the Western majors, but the fossil empire is largely controlled by national companies.

Share:

NOC Climat Transition Énergie Futur

The debate on climate change has long focused on the Western “majors”, often accused of perpetuating the world’s dependence on hydrocarbons. However, a recent study by the International Energy Agency (IEA) reveals that these majors hold less than 13% of the world’s oil and gas production and reserves. In reality, it is the national oil companies (NOCs) that dominate the market, controlling more than half the world’s production and nearly 60% of reserves.

The Importance of NOCs in the Energy Transition

COP28 in Dubai highlighted the importance of these NOCs. They are unique in that they are wholly or majority owned by producer states. The IEA stresses that, like the seven supermajors, these national companies have a key role to play in efforts to achieve carbon neutrality by 2050. It is crucial for all companies in the sector, not just the majors, to reduce the greenhouse gas emissions resulting from their operations.

The Challenge of Transparency and Climate Action

Despite their major influence, the NOCs often remain opaque and discreet when it comes to climate issues. Unlike the majors, few of them have announced climate targets. Exceptions include Aramco, Adnoc, PetroChina or Petrobras, aiming to make their operations carbon neutral by 2045 or 2050. This discretion is partly explained by the nature of their shareholding: as the State is the main shareholder, they are not subject to the same environmental requirements as listed companies.

Towards a Diversified and Sustainable Future

The predicted decline in fossil fuels poses an additional challenge for these companies and their countries. Economic diversification is becoming an urgent necessity. Giants like Aramco and Adnoc have the potential to set the pace in this transition. Their influence can extend far beyond hydrocarbon production, shaping energy transition strategies on a global scale.

The dominance of NOCs in the hydrocarbon industry raises critical questions about resource management, transparency and contribution to climate change. Their role in the energy transition is not only central but also complex, requiring a balance between economic, political and environmental imperatives.

Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.
Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.
The flow of crude between the Hamada field and the Zawiya refinery has resumed after emergency repairs, illustrating the mounting pressure on Libya’s ageing pipeline network that threatens the stability of domestic supply.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.
Swiss commodities trader Glencore has initiated discussions with the British government regarding its supply contract with the Lindsey refinery, placed under insolvency this week, threatening hundreds of jobs and the UK's energy security.