The U.S. delegation at the COP28 climate summit in Dubai came out swinging by unveiling a final methane rule for the U.S. oil and gas industry, focusing on tightening regulations to curb methane leaks and prohibiting routine flaring of natural gas produced by newly drilled oil wells. In another bold move, Vice President Harris announced a $3B pledge from the U.S. to aid developing nations in slashing greenhouse gas emissions. The historic summit is also seeing the United Nations fund taking shape to compensate poor countries for climate-related damage, marking a significant step forward in global climate action.
Exxon Mobil (XOM) CEO, Darren Woods, made history by being the first CEO from the company to attend a COP climate summit, leading a coalition of 50 oil and gas giants including Saudi Aramco and Shell in committing to reduce emissions from their operations.
In response to claims dismissing the viability of carbon capture and storage technology in combating climate change, Woods staunchly defended the role of oil and gas in the global energy transition, emphasizing Exxon’s capacity to contribute to climate solutions.
As the momentum at COP28 builds, global crude oil prices experienced a sixth consecutive weekly decline, prompting skepticism around OPEC+’s ability to deliver on its announced voluntary production cuts. Analysts are questioning whether the recent slide in oil prices signifies the endgame for OPEC or if the group could implement further cuts as prices soften.
Despite the tumultuous oil market, the Energy Select Sector SPDR Fund (NYSEARCA:XLE) managed to finish the week on a relatively stable note.
The energy and natural resources sector witnessed notable movements this week, with companies such as Fluence Energy and Plug Power securing remarkable gains, while others like Net Power and Atlas Lithium faced substantial declines.