Global Oil Execs Are Stuck Between Shareholders and Climate Promises

At this year’s World Petroleum Congress in Calgary, Canada, about 500 speakers, including Exxon Mobil Corp. Chief Executive Officer Darren Woods and Saudi Energy Minister Abdulaziz bin Salman Al Saud, will tackle topics including decarbonizing hydrogen production and indigenous participation in net zero efforts — fitting for a gathering titled “Energy Transition: The Path to Net Zero.” But the theme runs counter to the song many industry executives are singing.

For them, the security of global energy supplies has become a top priority, thanks to Russia’s war on Ukraine. Investors share those concerns and see a fresh appeal in the oft-maligned business of oil drilling. Shell CEO Wael Sawan has told shareholders his company will play to its strengths by renewing its emphasis on oil and gas production. Rich Kruger, the CEO of Suncor Energy Inc. — based in Calgary, the conference’s host city — said on a recent earnings call that the company will shed its “disproportionate emphasis” on the energy transition and focus on creating value from its oil-sands asset base.