2021 Energy Spending: Clean Power vs. Fossil Fuel
The latest numbers from ComprarAcciones.com show that the world’s shift toward green energy is getting a serious funding boost. In 2021, renewable power will see an 8.5% jump, hitting $243 billion. Oil and gas, on the other hand, will only inch ahead—just 1.6% to $311 billion. That means green projects will still trail the oil and gas juggernaut by about 22%.
Why the Gap Matters
- Renewables are outflanked by oil & gas in total capex.
- Even a tiny 1.6% increase feels slow when compared to an 8.5% surge.
- Financially, greener ventures are still working to catch up.
Saudi Aramco’s 2021 Outlook
The world’s oil giant, Saudi Aramco, has trimmed its 2021 capex target to $35 billion—$10 billion lower than earlier forecasts. Notably, the company’s 2020 earnings report shows a hefty 44.4% profit decline, putting the ticker in a bit of a bruised spot.
What’s the Takeaway?
While clean energy is clearly getting a push, oil and gas are still dominating on the budget front. The % gaps smack you with the reality that the green revolution is still a long haul from taking the lead. That said, the steady rise in renewable spending is a sign that the world’s cash is finally pivoting toward a less carbon‑heavy future—just slowly, like a turtle on a coffee break.
Exxon Mobil slashes 2021 capex by $16bn, Chevron by $8bn
Oil vs. Renewables: The Spending Showdown Gets Real Tight
Think the oil majors are still blowing their budget like it’s 2003? Think again. For the first time in a decade, the money gaps between the fossil fuel juggernauts and the green powerhouses are closing fast.
Raw Numbers: Who’s Spinning What?
- 2019: Oil & Gas giants shelled out $422 billion. Renewable firms, meanwhile, committed $177 billion.
- 2020: Oil & Gas sliding to $306 billion, while the renewables crowd surged to $224 billion.
2021 Trends: The Curve Is Turning
- Oil & Gas upstream spending buffeted down by a 15% compound annual growth rate (CAGR) from 2019–2021.
- Risk‑laden markets hammered 2020 even harder: Oil & Gas revenues fell 23% YoY.
- Wind & Solar teams braced up: Sales climbed 18% YoY.
Case Study – Saudi Aramco
From $88.2 billion in 2019 to $49 billion in 2020, the Saudi giant cut its profits in half. But the forecast? A quick rebound to pre‑pandemic glory by the end of 2021. Meanwhile capital spending slid 18%, dropping from $32.8 billion to $27 billion, lining up with the global oil majors’ cost‑cutter rally.
Big Oil on a Pinch‑Cut Budget
Our favorite oil buddies have all agreed: smaller is better now.
- Exxon Mobil vows to cap annual spend at $19 billion or less (down from a prior $35 billion estimate).
- Chevron aims to keep total spend between $14–$16 billion through 2025, a cut from the former $22 billion projection.
It’s a money‑saving wave spread across the industry, and renewables are riding it hard. The classic “hard money” tailwinds are now “green money” tailwinds. Stay tuned!
