Fossilised Capital: Price and Profit in the Energy Transition. Issue 1 (2nd January 2022)

• Record Type: Journal Article
• Authors: Christophers, Brett
• Is Part Of: New political economy. Volume 27:Issue 1(2022)
• Page Start: 146
• Page End: 159
• Publication Date: 2022-01-02
• Subjects: Energy transition -- oil and gas -- renewable energy -- profitability -- investment; Economics -- Periodicals; International economic relations -- Periodicals; 330.05
• DOI: 10.1080/13563467.2021.1926957
• Languages: English
• ISSNs: 1356-3467

Abstract

ABSTRACT: Getting renewable energies to a position of price competitiveness with fossil fuels has long been seen as a key challenge to the counter-carbon energy transition. Less discussed, but more significant to future investment trajectories in the capitalist global economy, is the relative profitability of fossil-fuel and renewable-energy production. Having recently pledged over the next few decades to decrease hydrocarbon production and increase renewable-energy generation, Europe's three oil and gas majors – BP, Shell and Total – now institutionally straddle the two energy worlds and their respective economic dynamics. This article takes stock of the companies' announcements and of the existing investment and profit landscape to assess the prospects for their own corporate energy transitions and thus for the global energy transition more broadly.