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UN Chief Blames Big Oil For His Own Policies

August 7, 2022

By Paul Homewood



They want to get rid of gas and oil, but demand a share of the profits in the meantime!




To a large extent, the cause of high oil prices lies at the door of the UN and the rest of the climate establishment, who have been doing their utmost to discourage investment in new oil wells. Worse still, their policies are likely to make matters much worse in the medium term.

A look at last years IEA report on oil shows just how far CAPEX has fallen in the past decade:


The report was published in March 2021, so may be out of date. However a recent Fitch analysis also shows that CAPEX last year was well down on years prior to 2020:


CAPEX declined sharply in 2015/16 because of the slump in oil prices. And obviously the lockdowns of 2020 knocked CAPEX for six. To some extent the slow recovery last year was still pandemic-related.

However, there has been an underlying decline in investment for the last few years, as oil companies have been cajoled through a mixture of political, judicial and activist shareholder pressure to cut back output, and switch investment to renewable energy:



One result of this has been the massive write downs made by oil companies and job losses:



As a consequence, the share of global investment made by Big Oil has fallen sharply since 2016, whilst the NOCs (National Oil Companies) have taken up the slack:




This is all, of course, predicated on falling demand for oil, as we supposedly switch to EVs and so on. But the IEA still forecast that demand will carry on rising for the next few years at least:



And the IEA themselves still project that global oil demand will carry on rising well into the 2030s, and still be higher than now in 2050, based on “prevailing policy settings”:




As new investment in oil is progressively squeezed ever tighter, this can only mean that prices will continue to rise over the long term.

If Gutteres is so concerned about oil prices, he needs to end the war on fossil fuels.

  1. Gamecock permalink
    August 7, 2022 11:41 am

    UN wants taxing authority. This is an attempt to get people to allow it.

    The ‘grotesque greed’ is being displayed by . . . the UN.

    • dennisambler permalink
      August 7, 2022 3:21 pm

      This has always been the objective, global energy taxation is the key to Global Socialist Governance, via the UN using its co-opted billionaires and global finance houses to manage the implementation. Once countries have climate laws, passed by complicit politicians, those same politicians then we must do this, it’s the law.

  2. Cheshire Red permalink
    August 7, 2022 11:54 am

    O&G companies don’t set global O&G prices; the international markets do. Guterres knows this.

    He also knows the war on FF will only drive prices up, not down, because….drum roll….people like him and organisations like the UN have declared war on FF’s that work and mandated the use of ‘renewables’ that don’t.

    They may work in the future but right now they provide energy only intermittently and therefore are too unreliable to be used as primary energy sources. Has anyone mentioned this problem to the UN before?

    Hence the market is keen to get hold of energy that keeps the lights on rather than stuff that doesn’t and will (grudgingly) pay the price. Sensible people have worked out that if you think O&G is expensive, try not having any!

    It’s entirely the politicians fault, so they try to deflect blame onto O&G instead. Risible.

  3. davidrussell22 permalink
    August 7, 2022 12:11 pm

    Renewables will never work. Already there are too many renewable sources (because there are many days where electricity generated is more than demand. Adding more capacity will only make things worse.

    The transition from FFs will only occur once humanity decides that nuclear power is the only way out for electricity generation. And then it will take 10-20 years to implement it.

    In the mean time, back up the truck to buy domestic oil and gas companies.

    • Broadlands permalink
      August 7, 2022 2:19 pm

      The transition away from fossil fuels to renewables and electric transportation can only work if fuels for conventional transportation are available. That means gasoline, diesel and renewable biofuels. There is no viable alternative in a modern world.

      • dennisambler permalink
        August 7, 2022 3:23 pm

        You can’t make wind turbines from wind turbines…

      • Realist permalink
        August 7, 2022 8:11 pm

        If there were an actual “transition”, it would happen naturally without politicians trying to force it.

  4. MrGrimNasty permalink
    August 7, 2022 12:40 pm

    Given that all policies, incentives, subsidies etc. are targeted at giving renewables, mainly wind and solar pv, preferential treatment, then it is inevitable that the cost of other forms of energy will rise to match the true cost of providing the equivalent electricity i.e reliable and despatchable – so that includes all the remote connections, interconnections, storage/backup etc.
    A price cap over £4000 isn’t going to be temporary pain, that and probably considerably higher, is as they like to say, the new normal.

    • In The Real World permalink
      August 7, 2022 5:34 pm

      The oil companies etc are not daft , they are ” Investing ? ” in a lot of renewables because the massive subsidies , [ usually in the from of carbon credits } , are used to offset the huge increases in the cost of taxes on their fossil fuels .
      That way they do not have to buy carbon credits on the open market .

      Tesla cars made a loss of about 700 million last year , but this was turned into a profit after 1.5 billion in subsidies .

      But , as others have said , the whole scheme is about taking money from the people .
      About £2000 per household at the moment . But you can be sure this will keep going up .

    • Della Hynes permalink
      August 8, 2022 3:06 pm

      The BBC have been major activists in bringing about the energy crisis. They have banged on about AGW for years and clamoured to stop fossil fuels. Just heard one of their foot-soldier zealots on R4, excitedly suggesting to the water companies that they should increase people’s water bills, because of water shortages in the south ‘cos of climate change.’ This will ‘force people to use less.’ Same attitude to FF. But there can’t be a problem with carbon emissions, otherwise, why would the BBC and governments be egging-on even more mass immigration -especially from third world countries? This would clearly accelerate demand for all the things western society has developed and routinely uses. Like domestic heating and water, cars, houses, schools, public transport, food (much is imported), roads (made with tarmac from oil), clothes, computers, televisions -all of which are either made from oil or require it in their manufacture. The BBC daily exhibit their utter loathing of Britain and British people, in their endless attacks on the British culture and way of life. They are driven by a deeply embedded Marxist ideology, firmly committed to destroying western civilisation and capitalism.

  5. Gamecock permalink
    August 7, 2022 1:20 pm

    Agree with above posts. Renewable energy can never be more than supplemental.

  6. Realist permalink
    August 7, 2022 3:23 pm

    Even before all the “climate” terror started, look at the TAX element of the actual price at point of sale and it has got even worse. Politicians could fix a lot of the problem by ideally scrapping these taxes on essential items altogether; alternatively the tax percentage of actual price must never exceed the standard rate of VAT.

    • dave permalink
      August 7, 2022 5:04 pm

      Meanwhile, the Atlantic Hurricane season has got off to a really slow start. The Sun is rather quiet. The Great Barrier Reef has the highest evahh cover of coral. Well, just since records began forty years ago. Taking a leaf from the enemy’s playbook, I will ignore the previous 500 million years of coral existence and say it again, EVAHH.

  7. It doesn't add up... permalink
    August 7, 2022 5:08 pm

    What is the UN going to do about Gazprom, Yukos, CNOOC, Sinochem, NIOC, Aramco, PdVSA, NNPC, Sonangol, YPF etc.?

  8. August 7, 2022 5:10 pm

    The veil is removed. No longer do we have any pretence of what they are doing. This is the new world order.

    • Realist permalink
      August 7, 2022 8:12 pm

      Look up Agenda 21 and Agenda 30

  9. It doesn't add up... permalink
    August 7, 2022 5:12 pm

    Want to know why companies are unconcerned by completely uneconomic CFD bids? They know REMA is coming (think reamer of your bank account). Those CFDs are going to be torn up.

    • Jack Broughton permalink
      August 9, 2022 3:41 pm

      I used to understand electricity pricing in the old CEGB days. It simply related to cost of fuel, capital, efficiency and availability. The present system seems to be modelled on the disastrous trading in derivatives: i.e. bears little relationship to cost / benefits. Will REMA just increase the wealth of the power system owners?

  10. John Hultquist permalink
    August 7, 2022 5:19 pm

    Antonio Guterres and fellow travelers will be happy when he and they oversee a world that emulates Cuba and Venezuela.

  11. August 7, 2022 6:40 pm

    ‘Falling oil prices’ — remember those?

  12. Curious George permalink
    August 7, 2022 7:03 pm

    Not only is Secretary Guterres a real socialist, but the whole UN is a socialist organization. Soon they’ll run out of planet’s money.

  13. Phoenix44 permalink
    August 7, 2022 7:51 pm

    How exactly are these companies being “greedy”? Shell produces oil, it sells it at market price. That’s what they do. The price is set largely by the oil traders, not the producers. If Shell sold it for less, the traders would make more money.

    The price is the means of allocating the resource via a market. Greed has literally nothing to dkbwith it.

    • Gamecock permalink
      August 7, 2022 8:06 pm

      Jimmy Carter infamously said, “Only government can manage scarcity fairly.”

      UN moves to produce scarcity.

      Government is standing by to manage scarcity.

    • Realist permalink
      August 7, 2022 8:09 pm

      It’s not the oil companies being greedy. It is the taxman and politicians who don’t like free markets and consumers actually choosing which products meet their needs.

    • Colin permalink
      August 8, 2022 3:30 pm

      The price isn’t determined by traders either, except in the very short term. It’s determined by supply and demand, certainly government can influence those, particularly supply.

  14. MrGrimNasty permalink
    August 7, 2022 9:00 pm

    Oh I love the predictability of CountryFile, every article starts beautiful, fascinating etc. then their hackneyed voice of doom announces “but now – de de der – all this is threatened by climate change”.
    What was particularly daft this time was that they were talking about yet to be discovered Roman artefacts being damaged, as if the climate hasn’t considerably varied far outside today’s parameters several times since then.

    • Gamecock permalink
      August 7, 2022 9:23 pm

      It was the editorial bent of National Geographic Magazine for a couple of decades. Probably still, but I dropped my subscription years ago.

      Anywho, it was:

      “This place is great – we have pictures; Man is messing it all up.”

    • D Hynes permalink
      August 8, 2022 5:05 pm

      The BBC is so anti-British, they need to be shut down.

  15. Epping Blogger permalink
    August 7, 2022 10:33 pm

    Good to see he had time for lunch.

  16. roger permalink
    August 7, 2022 10:35 pm

    shell have announced a cutback in refinery investment which does not auger well for when govts beg for the oil taps to be turned back on.
    Calumny heaped on calumny by the products of our universities. Thickos the lot of them.

    • It doesn't add up... permalink
      August 7, 2022 10:40 pm

      Shell sold or closed all its UK refineries years ago.

  17. It doesn't add up... permalink
    August 7, 2022 11:13 pm

    I see the new President of Colombia just inaugurated is a former M-19 guerilla leader, signed up to no more oil licences, no fracking, etc. Shouldn’t take long to see Venezuelan refugees deciding that going home may be a better bet.

  18. Coeur de Lion permalink
    August 8, 2022 7:40 am

    The rise in renewables is not even keeping pace with the rise in energy demand, let alone replacing it.
    Is that a fat self-indulgent face?

  19. Rowland P permalink
    August 8, 2022 11:18 am

    And now, we have the absurd situation of businesses having to be prepared to shut down occasionally – and possibly more frequently – because there won’t be enough power to go round. Another nail in the economy with more jobs at risk.

  20. D Hynes permalink
    August 8, 2022 5:16 pm

    This has been entirely engineered by global Marxist socialists, going back the the socialist founder of the IPCC, Maurice Strong, who decided ‘global warming’ fearmongering could act as a vehicle for extracting wealth from the west, to ‘level it down’ to third world standards. The money is quietly absorbed by the elite globalist gazillionaires, who are all pushing their WEF agenda like there’s no tomorrow. We need to fight back. Check out Matt Gubba –!&&p=6dfebd95d07f21afJmltdHM9MTY1OTk3NTM1NiZpZ3VpZD1hNTU3Y2VhNy0zYTU4LTRhMzEtODg0Yi0zYjEzZmY4ZGM0Y2MmaW5zaWQ9NTE4Ng&ptn=3&hsh=3&fclid=61f18069-1735-11ed-855d-5cd69718b0f5&u=a1aHR0cHM6Ly90d2l0dGVyLmNvbS9NYXR0R3ViYmE&ntb=1

  21. Gamecock permalink
    August 8, 2022 10:14 pm

    “I have never understood why it is “greed” to want to keep the money you have earned but not greed to want to take somebody else’s money.”

    ― Thomas Sowell

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