In the carbon wars, big oil is winning.

Greenhouse gas

(AP Photo/John Giles)

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Listening to President Obama’s State of the Union address, it would have been easy to conclude that we were slowly but surely gaining in the war on climate change. “Our energy policy is creating jobs and leading to a cleaner, safer planet,” the president said. “Over the past eight years, the United States has reduced our total carbon pollution more than any other nation on Earth.” Indeed, it’s true that in recent years, largely thanks to the dampening effects of the Great Recession, US carbon emissions were in decline (though they grew by 2 percent in 2013). Still, whatever the president may claim, we’re not heading toward a “cleaner, safer planet.” If anything, we’re heading toward a dirtier, more dangerous world.

A series of recent developments highlight the way we are losing ground in the epic struggle to slow global warming. This has not been for lack of effort. Around the world, dedicated organizations, communities and citizens have been working day by day to reduce greenhouse gas emissions and promote the use of renewable sources of energy. The struggle to prevent construction of the Keystone XL tar sands pipeline is a case in point. As noted in a recent New York Times article, the campaign against that pipeline has galvanized the environmental movement around the country and attracted thousands of activists to Washington, DC, for protests and civil disobedience at the White House. But efforts like these, heroic as they may be, are being overtaken by a more powerful force: the gravitational pull of cheap, accessible carbon-based fuels, notably oil, coal and natural gas.

In the past few years, the ever more widespread use of new extractive technologies—notably hydraulic fracturing (to exploit shale deposits) and steam-assisted gravity drainage (for tar sands)—has led to a significant increase in fossil fuel production, especially in North America. This has left in the dust the likelihood of an imminent “peak” in global oil and gas output and introduced an alternative narrative—much promoted by the energy industry and its boosters—of unlimited energy supplies that will last into the distant future. Barry Smitherman of the Texas Railroad Commission (which regulates that state’s oil industry) was typical in hailing a “relatively boundless supply” of oil and gas worldwide at a recent meeting of the Society of Exploration Geophysicists.

As oil and gas have proven unexpectedly abundant and affordable, major energy consumers are planning to rely on them more—and on renewable sources of energy less—to meet their future requirements. As a result, the promises we once heard of a substantial decline in fossil fuel use (along with a corresponding boom in renewables) are fading. According to the most recent projections from the US Department of Energy, global fossil fuel consumption is expected to grow by an astonishing 40 percent by 2035, jumping from 440 to 615 quadrillion British thermal units.

While the combined share of total world energy that comes from fossil fuels will decline slightly—from 84 percent to 79 percent—they will still dominate the global energy marketplace for decades to come. Renewables, according to these projections, will continue to represent only a small fraction of the total. If this proves to be accurate, there can be only one plausible outcome: vastly increased carbon emissions leading to rising temperatures and the sort of catastrophic climate change scenarios that now seem almost impossible to imagine.

Think of it this way: in our world, the gravitational pull of carbon exerts itself every minute of every day, shaping the energy decisions of individuals, companies, institutions and governments. This pull is leading to defeat in the global struggle to slow the advance of severe climate change and is reflected in three recent developments in the energy news: a declaration of surrender by BP, a major setback in the European Union and a strategic end-run by Canadian tar sands companies.

BP Announces the Defeat of Renewables

Every year, energy giant BP (once British Petroleum) releases its “Energy Outlook” for the years ahead, an analysis of future trends in global production and consumption. The 2014 report—extending BP’s energy forecast to the year 2035—was made public on January 15. Typically, its release is accompanied by a press conference in which top BP executives offer commentary on the state of world energy, usually aimed at the business media. This year, the company’s CEO, Bob Dudley, spoke with unbridled optimism about the future market for his company’s energy products, assuring his audience that the global supply of fossil fuels would remain substantial for years to come. (Dudley took over the helm at BP after his predecessor, Tony Hayward, was dumped in the wake of the 2010 Deepwater Horizon disaster in the Gulf of Mexico.)

“The picture in terms of resources in the ground is a good one,” he noted. “It’s very different to get past concerns about supply peaking. The theory of peak oil seems to have—well—peaked.”

This, no doubt, produced the requisite smiles from Dudley’s oil-friendly audience. Then his comments took a darker turn. Can we satisfy the world’s energy requirements with fuels that are sustainable, he asked. “Not at the moment,” he admitted. Because of a rising tide of fossil fuel consumption, he added, “carbon emissions are currently projected to rise—by 29 percent by 2035, we estimate in the Outlook.” He acknowledged that, whatever good news might be found in that document, in this area “steps are needed to change the forecast.”

Next, Dudley tried to put a hopeful spin on the long-term climate prospect. By replacing coal-fired power plants with less-carbon-polluting natural gas, he indicated, overall greenhouse gas emissions can be reduced. Increasing the efficiency of energy-consuming devices, he added, will also help. All of this, however, adds up to little when it comes to the big picture of carbon emissions. In the end, he could point to few signs of progress in the struggle to slow the advance of climate change. “In 2035, we project that gas and coal will account for 54 percent of global energy demand [and oil another 27 percent]. While renewables will grow rapidly, their share will reach just 7 percent.”

Most of the media coverage of Dudley’s appearance focused on his expectations of long-term energy abundance, not what it would do to us or our planet. Several commentators were, however, quick to note how unusual it was for an oil company CEO to address the problem of carbon emissions at all, no less express something verging on despair over the prospect of making any progress in curbing them.

“[Dudley] concludes… [that] the world is still a long way from delivering the peak in greenhouse gas emissions many scientists advise has to be achieved within the next decade to minimize the risk of dangerous climate change,” observed energy analyst James Murray at

Europe’s Retrenchment

The member states of the European Union (EU) have long exercised global leadership in the struggle to reduce greenhouse gas emissions and slow the pace of climate change. Under their justly celebrated 20-20-20 plan, adopted in December 2008, they are committed to reducing their emissions by 20 percent over 1990 levels by 2020, increasing their overall energy efficiency by 20 percent, and achieving 20 percent reliance on renewables in total energy consumption. No other region has embraced goals as ambitious as these, and none has invested greater resources in their implementation. Any wavering from this path would signal a significant retrenchment in the global climate struggle.


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