United States

American oil majors dismiss wind and solar projects

18:34, 27 October 2021
American oil majors dismiss wind and solar projects Photo: pixabay.com

Top US oil companies are increasing their activity which illustrates that the US is not currently planning to rapidly shift to renewable energy in contrast to most of its EU allies.

Fund managers of the world’s largest investment firms are also keeping a large share of their portfolios in oil related companies instead of focusing on renewable energy projects.

In the last quarter oil companies have shown a more positive return and paid higher dividends than those who work in the wind and solar project field, following the jump of oil and gas prices this year.

Investors currently prefer oil companies as they have a long history of paying dividends and are mostly an already well established business.

While renewable energy projects on the other hand offer little to no revenue at the moment as they mostly focus on future growth.

The situation in the US differs from Europe mostly because EU companies spend a higher share of capital on renewable power.

 American oil firms like Chevron and Exxon Mobil are not currently paying much attention to energy transition and instead they are expected to increase oil production.