Japex, a Japanese oil and gas company, is shifting its focus back to its traditional business after facing disappointing returns in the renewable energy sector. It joins other major companies in scaling back their green energy investments.
Japex President Michiro Yamashita explained in an interview with Reuters that the company will prioritize oil and gas exploration and production. He highlighted the difficulty of securing profitable returns from renewable energy sources, such as offshore wind, due to rising costs.
The company, which operates globally in places like the UK and Norway, is also looking to acquire an operator role in a U.S. shale project. Yamashita noted that his main challenge is securing a tight oil operator business in the U.S. and creating a sustainable investment structure.
Japex plans to finalize such an agreement by 2025 or 2026, according to Yamashita. The company is already involved in several tight oil development projects in Texas.
Last year, Yamashita emphasized that Japex views the U.S. as the most attractive destination for oil and gas investments. Over the next several years, Japex intends to increase its focus on oil and gas while reducing investments in renewable energy.
Japex’s decision mirrors similar moves by European oil giants like Shell, Equinor, and BP, all of which have scaled back their renewable energy investments. Shell and Equinor have already announced substantial cuts to their renewable energy commitments. BP, after posting its lowest profits in years, stated last week that it would reset its strategy to improve performance, boost cash flow, and rebuild investor trust. BP’s CEO, Murray Auchincloss, emphasized this shift in a recent statement.
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