SAUDI Aramco is the latest oil major to ramp up spending in oil and gas despite net zero pledges, following record profits last week.

The oil major has committed $55bn in fossil fuel spending this year, up from $37.6bn last year, in a move which has prompted criticism from green activists.

Aramco's targets include a 1m barrels per day boost in oil production from 12m to 13m over the next four years, and a 50 per cent hike in gas production by the end of the year.

It comes after the company unveiled bumper profits last week, the largest ever in the history of fossil fuel companies, dwarfing its rivals with a record $161bn full-year earnings.

The firm's rivals are also boosting their own oil and gas spending plans and maintaining their role in the sector for multiple decades despite net zero pledges - while renewable spending lags far behind.

BP chief executive Bernard Looney ar- gued spending on both renewables and fossil fuels was an "and" not an "or" question, and has eased the company's emissions targets.

The energy giant had previously promised its emissions would be 35-40 per cent lower by the end of this decade - but it is now targeting a 20-30 per cent cut, and plans a greater production of oil and gas over the next seven years compared with previous targets.

Meanwhile, new Shell boss Wael Sawan has warned that "cutting oil and gas production is not healthy" and implied the company's plan to reduce output 1-2 per cent every year over this decade is now under review. Andy Mayer energy analyst at free market think the Institute of Economic Affairs, warned producers would only shift to renewables when a clear business case was made.

"The companies deserve to be criticised for their prior incaution with words, not their current wisdom with new investments," Mayer said.

Aramco, BP and Shell have been approached for comment.

(c) 2023 City A.M., source Newspaper