Total Dumps Arctic Drilling, Urges ‘Strict Investment Discipline’
French oil giant Total S.A. is ending its involvement with Arctic drilling and limiting its tar sands/oil sands production, in a bid to align its operations with the push to keep average global warming below 2.0°C.
“The 2°C scenario highlights that a part of the world’s fossil fuel resources cannot be developed,” states a strategy paper released for the company’s annual general meeting earlier this week. “Total’s growth strategy takes this into account.”
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The company says it will presume a carbon price of US$30-40 a tonne in deciding where to drill, in what ClimateHome calls “the clearest industry acknowledgment to date of the risks of unfettered exploration.”
In a foreword to the strategy, CEO Patrick Pouyanne observes that “COP21 was definitely a watershed,” adding that “strict investment discipline is vital” to avoid wasting capital on fossil projects that won’t be needed.
Pouyanne “aims to ramp up renewables, notably solar and biofuels, to form 20% of the company’s portfolio in 20 years’ time,” ClimateHome reports.