Good morning, here's what the Oilman has for you today:

• Green Asset Managers Criticize Big Oil for Being B …

• Over Fifth of Global Refining Capacity at Risk of …

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Green Asset Managers Criticize Big Oil for Being Big Oil

Climate Action 100+ has a beef with Big Oil.

It’s slammed the world’s top 10 oil companies for not doing enough for the climate.

By producing too much oil and gas.

It’s never enough

Climate Action 100+ is a grouping of financial firms and banks.

Their purpose is to push the transition on large businesses.

Obviously, Big Oil is Target #1.

And now the financiers are attacking.

They assessed the ten largest public oil companies in three sections.

These were Disclosure, Alignment, and Climate Solutions.

Some scored well on Disclosure and Climate Solutions, but all scored low on Alignment.

Because Alignment refers to alignment with Paris Agreement goals.

And there’s no way a company that produces oil and gas can align with those goals.

Unless it promises to decimate its production, of course.

But none of the top 10 are going to do that.

Not when demand is on the rise, and so are prices.

Pumping up the pressure

Climate Action 100+ has taken it upon itself to get Big Oil in line.

Its members genuinely believe this could happen.

It would be adorable if it weren’t so dangerous.

Luckily, for now, they don’t have the means to force oil companies in the desired direction.

But with the help of governments, the climate-conscious banks could get their wish.

Just look at the UK – emission pressure and windfall profit taxes have slashed oil and gas output.

And guess what they also did: they increased imports of oil and gas.

Over Fifth of Global Refining Capacity at Risk of Closure

More than 20% of the world’s refineries are at risk of being shut down.

That’s about 2.9 million barrels daily that could get wiped out.

By weaker gasoline margins and net-zero pressure.

A repeat of the pandemic but worse

A string of refineries shut down during the pandemic lockdowns.

Demand for fuels had slumped and refiners were struggling.

Some said at the time it was okay because demand was not coming back.

Only it did, with a vengeance.

The refineries that closed were in Europe and the U.S.

As soon as demand picked up, Europe’s imports from Asia surged.

But now Wood Mackenzie expects demand to weaken—again.

Climate pressure is also going to grow, squeezing refiners, especially in Europe.

Chinese refiners probably can’t wait.

The stranded assets that weren’t

A few years ago, China was building refineries like there’s no tomorrow.

At the time, analysts warned these would end up as stranded assets.

Because oil demand was going away and all that.

Guess what: China's fuel exports to Europe soared last year.

Europe needed fuels, and it wasn’t making them itself.

It’s only going to get worse if more refineries close.

The U.S. faces a similar danger.

It’s compounded by some refiners’ decision to switch to biofuel production.

There will be biofuel, but maybe fewer local fuels to blend it with.

That’s not a stupid idea at all at a time when self-sufficiency is being reconsidered as something that’s actually positive for a country.

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