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Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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Failing To Invest In Oil And Gas Would Be The “Road To Hell For America”

  • The CEO of JP Morgan, Jamie Dimon, said that banks refusing to fund new oil and gas projects would be “the road to hell for America”.
  • An unnamed senior executive at a U.S. bank is considering removing the organization from global green commitments due to legal risk.
  • Dimon highlighted the fact that the current energy crisis has led to rising emissions due to increased coal use as oil and gas was not available.
Oil and gas

Cutting off investments in fossil fuels would be the road to hell for the United States. This is what JP Morgan’s chief executive Jamie Dimon said during a congressional hearing on a range of topics.

"Please answer with a simple yes or no, does your bank have a policy against funding new oil and gas products, Mr. Dimon?" Rep. Rashida Tlaib asked JP Morgan’s chief executive, after laying out net-zero plans that require a shift away from fossil fuels.

"Absolutely not, and that would be the road to hell for America," Dimon said in response. He went further, as well, saying the country needed to invest more not less in oil and gas.

"We aren't getting this one right. The world needs 100 million barrels effectively of oil and gas every day. And we need it for 10 years," Dimon said, adding "To do that, we need proper investing in the oil and gas complex. Investing in the oil and gas complex is good for reducing CO2. We've all seen, because of the high price of oil and gas — particularly for the rest of the world — you've seen everyone going back to coal."

Dimon’s statements come amid rising opposition among banks to increasingly stringent decarbonization rules, with some, including JP Morgan considering an exit from the Glasgow Financial Alliance for Net Zero, according to a recent report by the FT.

The reconsideration of their participation in the alliance came as a result of growing fears of litigation opportunities, rife in new climate-related requirements for the businesses they fund.

“I am close to taking us out of these global green commitments — I’m not going to allow third parties to create legal liabilities for us and our shareholders. It is immoral and irresponsible,” one unnamed senior executive at a U.S. bank told the FT. “What if we get it wrong, make a mistake or someone lies? Then the bank can be sued, that is an unacceptable risk.”

By Irina Slav for Oilprice.com

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  • Mamdouh Salameh on September 22 2022 said:
    Were the United States to follow similar hasty policies of accelerating energy transition to renewables at the expense of fossil fuels, succumb to pressure from environmental activists to keep oil and gas underground and listen to the hapless International Energy Agency (IEA) call to immediately halt any new investments in oil and gas, this will be far more disastrous to the United States that it has so far been to the EU. In fact it could indeed be the road to hell for America.

    The US has the largest car fleet in the world amounting in 2020 to 276 million vehicles. It is also the world’s largest consumer of crude oil estimated at 21.0 million barrels a day (mbd) and the second largest importer of crude after China estimated at 9.0-10.0 mbd.

    Underinvestment in oil and gas in the US and the world at large will lead to shortages, staggering prices feeding into inflationary pressure and possible collapse of the US economy. All the printing of dollars won’t help America and its economy then.

    Oil and gas are here to stay well into the future. They are projected to continue to drive America’s economy and the world’s for the next 100 years. There are no definite indications that this situation will change soon.

    Producing oilfields of the world are depleting annually at an estimated average rate of 6%. This means that any expansion in oil production capacity should allow for this depletion and therefore should at least aim to reach 106 mbd in coming years.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
  • Chris Krisinger on September 23 2022 said:
    Pursuing an "end to fossil fuels" as national policy--as Tlaib naively, but maliciously, promotes-- willfully ignores a practical and inescapable fact about air travel (as but one example). An electric airliner does not exist that can transport a couple hundred people rapidly over long distances, nor does one powered by wind, solar, batteries, or any other "renewable" method. There are no feasible, practical options for aircraft engines that can or will replace the jet engines that power today's airliners anytime soon. Industry experts say it may be as late as 2040 — if then — before possible alternative power sources such as hydrogen or battery-electric engines are ready for widespread use. The jet engines on today's 25,000-plus global commercial aircraft fleet burn jet fuel — still in relatively large quantities — and that fuel must be nearly all fossil fuel for some time to come for even the most fuel efficient modern jet airliners.

    Air travel is but one very visible reminder of a key national industry requiring a robust supply of fossil fuels for years, if not decades, to come. For this nation and Americans to continue to derive the benefits of air travel, the president's, his administration's, and Rep. Tlaib's open hostility toward the vital role fossil fuels will continue to play in this nation's future must be permanently "grounded."

    Representative Tlaib is not working for the 'common and greater good' of ALL Americans. Her motives must be questioned.
  • independence01776 d on September 23 2022 said:
    Yes, capitalist are holding back because they want a clean environment over profits. The issue for oil production (shale) is risk and reward. Investors are holding back because the reward is not worth the risk and when prices rise to make the equation balance, then they invest. Seems today's price is oil above $80 per barrel. Likely in a couple of years the price required will be more than $100 per barrel. With EV's starting to take over new car sales, with renewable energy solar now equal in cost to just the price of fuel for a natural gas plant and with govt. policy focused addressing the demands of it's citizens to fight global warming is it any wonder capital flows to the production of oil are restrained...in the US and globally.

    It's the new normal and will only get worse going forward. Oil production peaked in 2019 and will accelerate in its decline as renewables and EV's grow rapidly over the next 2 decades.
  • Daniel Parr on October 01 2022 said:
    You cannot just do whatever you want. You have already made the fuel unaffordable. Making many starve to death. Just because you raise the price does not mean people buy it. We don't. There's a new toy in the world called hydrogen. You may as well stock pole you dumb oil company . Cause we're not paying those prices. Any vehicles are capable of being hybrid to hydrogen giving way more miles to the gallon. And we're doing it. So when you make claims that your the Boss, your full of it bs. Your claims are false. If we sell numerous sales of hydrogen units your numbers are very wrong. And so far, we will out do your sales since you already created hell for everyone with your outrageous numbers at those pumps. Whomever you are, Biden, you will loose. Cause water is free to the global community and always will be. So, this makes you under arrest, whether you understand it or not, is irrelevant

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