Japex to Prioritise Oil and Gas Investment through 2030
Japex is prioritising investment in oil and gas exploration and production (E&P) through 2030, revising an earlier plan to aggressively expand its renewables businesses due to rising costs and uncertain returns. The company's president, Michiro Yamashita, stated that securing a fair return from renewable energy sources such as offshore wind is challenging. Japex aims to maintain its current ratio of E&P contributing 70%-80% of earnings through 2030.
- This strategic shift highlights the challenges of balancing investment in low-carbon technologies with the financial realities of the fossil fuel industry, particularly during times of high energy demand and prices.
- How will Japex's prioritisation of oil and gas investment impact its ability to meet Japan's carbon neutrality targets by 2050?