Oil and gas stocks are plummeting after OPEC+ revealed plans to slowly eliminate voluntary production cuts this month.
OPEC+ includes all members of the Organization of the Petroleum Exporting Countries plus 10 non-OPEC oil-producing countries. The group said it will gradually remove the cuts of 2.2 million barrels per day.
Analysts said OPEC+ production cuts have been a major factor supporting oil prices. Following the group's announcement, there was a decline in forward strip prices for both 2025 and 2026, according to Investing.com. Oil-weighted equities dipped by more than 6%.
The world is moving away from dirty fuels and toward a cleaner economy. The Guardian reported that global oil consumption for cars and trucks will drop by 50% over the next 30 years. The decline is motivated by a booming electric vehicle market and other clean energy resources. Still, experts have concerns about the impact of shipping, aviation, and industry.
According to the U.S. Environmental Protection Agency, there are more than 3,400 dirty fuel power plants in the nation. The burning of oil, coal, and natural gas contributes to polluting gases that are causing the overheating of the planet. Air pollution from the dirty energy sources can be harmful to human health and trigger various health conditions, including asthma and respiratory infections.
Oftentimes, companies deceptively claim to support the environment while still causing damage to the planet — otherwise known as greenwashing. Some oil companies have been overstating their commitments to achieving net-zero pollution in the next 30 years, according to the Natural Resources Defense Council. For example, while BP said it was going to slash emissions — it also said it would increase oil and gas production through 2027.
Watch now: How bad is a gas stove for your home's indoor air quality?
Despite misleading marketing, the future seems to be leaning in a greener direction. The International Energy Agency reported that clean energy added around $320 billion to the world economy in 2023. There has also been a positive impact on employment. Per the IEA, there were more jobs in clean energy than dirty fuels in 2021. Experts said that trend will likely continue.
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