Oil

Billions of federal tax dollars will soon be pouring into Louisiana to fight climate change, yet the projects they’re supporting may actually boost fossil fuels – the very products warming the planet. At issue are plans to build dozens of federally subsidized projects to capture and bury carbon dioxide from industries. On the surface, these projects seem beneficial. Keeping carbon dioxide out of the atmosphere prevents the greenhouse gas from fueling climate change. In practice, however, this may lead to a net increase in fossil fuel production and more emissions. That’s because many of these carbon capture projects will be handling emissions from facilities that rely on oil and natural gas – in fact, many of the projects are tied to major oil and gas companies through subsidiaries. Under new federal rules, the projects can receive generous tax subsidies. The more carbon dioxide the factories produce and capture, the more federal money the projects can r...

Capturing carbon dioxide from the air or industries and recycling it can sound like a win-win climate solution. The greenhouse gas stays out of the atmosphere where it can warm the planet, and it avoids the use of more fossil fuels. But not all carbon-capture projects offer the same economic and environmental benefits. In fact, some can actually worsen climate change. I lead the Global CO₂ Initiative at the University of Michigan, where my colleagues and I study how to put captured carbon dioxide (CO₂) to use in ways that help protect the climate. To help figure out which projects will pay off and make these choices easier, we mapped out the pros and cons of the most common carbon sources and uses. Replacing fossil fuels with captured carbon Carbon plays a crucial role in many parts of our lives. Materials such as fertilizer, aviation fuel, textiles, detergents and much more depend on it. But years of research and the climate changes the world is already experienci...

In December 2023, negotiators from countries worldwide will meet in the United Arab Emirates for the next round of international climate talks. While the talks are considered essential to securing global agreements needed to avoid dangerous climate change, confidence in the summit, known as COP28, is at a low. One reason is the man in charge. The UAE set off a firestorm in January 2023 when it announced that Sultan Ahmed al-Jaber, the CEO of the state-owned Abu Dhabi National Oil Company – also known as ADNOC – would be the president-designate of the climate summit, giving him a large amount of control over the meeting’s agenda. U.S. and European politicians demanded al-Jaber’s resignation. Former U.S. Vice President Al Gore claimed that fossil fuel interests had “captured the U.N. process to a disturbing degree, even putting the CEO of one of the largest oil companies in the world in as president of COP28.”...

Fifty years ago, a secret deal among Arab governments triggered one of the most traumatic economic crises to afflict the United States and other big oil importers. Saudi King Faisal and other Arab leaders launched an oil embargo on Oct. 17, 1973, as payback for Washington siding with Israel in its war with neighboring Egypt and Syria. The oil market hostilities arose from a pact between Faisal and the leaders of Egypt and Syria, whose armies planned surprise drives to retake their territory under Israeli occupation. If the United States intervened to assist Israel, Faisal and other Arab producers agreed to retaliate with the “oil weapon.” When Washington airlifted in U.S. weapons that helped Israel thwart Arab gains, Faisal and OPEC’s Arab members retaliated. They increased oil prices, banned oil shipments to the United States and cut production by 5% per month. The ensuing economic and political carnage is legendary. The embargo catalyzed a long period of...

Electric vehicle sales are growing faster than expected around the world, and sales of gas- and diesel-powered vehicles have been falling. Yet, the U.S. government still forecasts an increasing demand for oil, and the oil industry is doubling down on production plans. Why is that, and what happens if the U.S. projections for growing oil demand are wrong? I study sustainability and global energy system transformations. Let’s take a closer look at the changes underway. EVs’ giant leap forward On Sept. 12, 2023, Fatih Birol, director of the International Energy Agency, an intergovernmental organization that advises the world’s major economies, drew global attention when he wrote in the Financial Times that the IEA is now projecting a global peak in demand for oil, gas and coal by 2030. The new date was a significant leap forward in time compared with previous estimates that the peak would not be until the 2030s for oil and even later for gas. It also stood out...