50 Big Oil Companies Pledge Significant Emission Reductions

 US Vice President Kamala Harris addresses the audience after delivering a speech on Saturday at the COP28 summit in Dubai (AP)
US Vice President Kamala Harris addresses the audience after delivering a speech on Saturday at the COP28 summit in Dubai (AP)
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50 Big Oil Companies Pledge Significant Emission Reductions

 US Vice President Kamala Harris addresses the audience after delivering a speech on Saturday at the COP28 summit in Dubai (AP)
US Vice President Kamala Harris addresses the audience after delivering a speech on Saturday at the COP28 summit in Dubai (AP)

COP28 President Sultan Al-Jaber announced on Saturday that 50 major global oil companies have committed to reducing methane emissions, one of the most hazardous greenhouse gasses, to nearly zero by 2030 and cease routine natural gas flaring.

The 50 companies, members of the Oil and Gas Decarbonization Charter, collectively account for about 40% of the world's oil production.

Al-Jaber emphasized that the inclusion of oil and industry companies in COP28 would be a crucial element this year.

The announcement holds significant importance in significantly reducing global greenhouse gas emissions by almost half in about seven years to mitigate the impact of global warming to 1.5 degrees Celsius.

The commitment includes major national oil companies such as Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), Brazil’s Petrobras, Angola’s Sonangol, and multinational corporations like Shell and Total.

“The world does not work without energy,” said al-Jaber at an energy session on Saturday.

“Yet the world will break down if we do not fix energies we use today, mitigate their emissions at a gigaton scale, and rapidly transition to zero carbon alternatives,” he added.

Methane can be released at several points along the operation of an oil and gas company, from fracking to when natural gas is produced, transported or stored. Over a shorter period, it’s more than 80 times more powerful than carbon dioxide, the greenhouse gas most responsible for climate change.

Al-Jaber urged oil and gas companies to exert more effort in finding solutions for indirect greenhouse gas emissions, otherwise known as Scope 3 emissions.

The Oil and Gas Decarbonization Charter has the support of heavyweight OPEC nations, Saudi Arabia and the UAE.

In a separate commitment, approximately 117 governments pledged to triple the world’s capacity for renewable energy by 2030 during the COP28 summit on Saturday.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.