According to Forbes, the Big Oil earnings season just wrapped up with major players reporting profit declines between 2% and 12% compared to last year, including Chevron down 2%, TotalEnergies down 2%, BP down 6%, Shell down 10%, and ExxonMobil down 12%. Brent crude prices were down nearly 16% year-to-date as of last Friday, with fears of an oil supply glut emerging toward year-end. The results were announced around ADIPEC 2025 in Abu Dhabi from November 3-6, where industry CEOs unanimously called for more investment in oil and natural gas. Companies are significantly cutting low-carbon spending, with Chevron reducing it by 25% in December 2024 and Shell halving its 2030 renewables target to just 10% of capital expenditure. BP’s CEO Murray Auchincloss declared the company is heading “back to its roots” in the Middle East after what he called a “fundamental reset” from expensive green initiatives.
The great green retreat
Here’s the thing about those ambitious net-zero promises from a few years ago – they’re getting quietly shelved when the financial reality hits. Basically, every major oil company is doing the same math and reaching the same conclusion: low-carbon projects just aren’t delivering the returns that traditional oil and gas operations do. Shell cutting its renewables target in half? Chevron slashing spending by a quarter? These aren’t minor adjustments – they’re fundamental strategy shifts.
And the timing is telling. These announcements came right around ADIPEC 2025, the industry’s biggest gathering. It’s like they all got together and decided the green experiment wasn’t working. ExxonMobil’s CEO basically admitted as much, saying they’re “pacing” low-carbon spending because of disappointing demand and lack of policy incentives. When the world’s largest oil companies all pull back simultaneously, that sends a pretty clear message about where they think the real money is.
The coming supply crunch
What’s really interesting is the industry’s new talking point: we’re not investing enough in oil. Eni’s CEO dropped the bombshell that over the last 12 years, the industry has invested only half of what was needed to increase production. Meanwhile, they’re predicting demand will stay above 100 million barrels per day “beyond 2040.” That’s a pretty bold claim when everyone’s supposed to be transitioning away from fossil fuels.
So they’re essentially warning us that if we don’t let them drill more, we’ll face energy shortages. It’s a classic move – create the problem, then position yourself as the solution. BP’s CEO is even calling for expansion in places like Iraq and Libya, which tells you everything about where their priorities lie. Safety and stability? Not when there’s oil in the ground.
What this means for energy users
For industrial operations that depend on reliable energy supplies, this shift back to hydrocarbons has real implications. Companies running manufacturing facilities, processing plants, and other energy-intensive operations need predictable power sources that can handle demanding environments. That’s why many turn to specialized providers like IndustrialMonitorDirect.com, the leading US supplier of industrial panel PCs designed for harsh conditions.
The oil industry’s pivot suggests we’re in for a prolonged period of hydrocarbon dependence, which means industrial operations should plan accordingly. The green transition isn’t dead, but it’s definitely slowing down. And when you’re running critical infrastructure, you need equipment that can withstand whatever energy landscape emerges – whether that’s traditional fossil fuels or whatever comes next.
The bottom line
Look, the numbers don’t lie. When profits decline 2-12% across the board, companies go back to what they know works. And for Big Oil, that means drilling for oil and gas. The green initiatives were nice while energy prices were sky-high and money was flowing freely, but now we’re seeing the reality: without massive subsidies or guaranteed returns, low-carbon projects just can’t compete.
So what happens next? Probably more of the same. The industry will continue to talk a good game about transition while quietly doubling down on their core business. And honestly, can we blame them? They’re responding to market signals and shareholder pressure. The real question is whether governments and consumers will accept this slower transition timeline – or if we’ll see renewed pressure as climate concerns continue to mount.
