Banks and offshore oil and gas
By: BankTrack
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Link to offshore oil and gas policy table
Link to offshore oil and gas exclusion table

Offshore oil and gas

Offshore oil and gas refers to all exploration taking place at sea. Oil and gas can be extracted by drilling a borehole below the seabed and transporting the oil or gas to onshore facilities by either a pipeline or via oil/LNG carrying ships. Offshore oil and gas production is more challenging than land-based installations due to rough seas, lack of pre-existing infrastructure and the need to anchor the platform to the seabed or keep it in place using GPS systems, called dynamic positioning. Drilling at sea is also very expensive - up to many hundred millions of US dollars per well - and can only be profitable when the oil or gas price is high. Recent exploration has opened new areas for offshore oil and gas drilling in Guyana, Suriname, the Mediterranean and South Africa. 

Drilling offshore for oil and gas is dangerous and several disasters have occured in the last decades, of which the blowout and oil spill of Deepwater Horizon in 2010 remains arguably the most dire example. But even when oil or gas spills do not occur, offshore operations have a negative impact. The drilling itself, its production water (which contains oil and suspended solids), and daily operations on the platform all negatively affect the environment. Finally, the costs of decommissioning an oil platform at the end of operations can cost up to a couple of hundreds of millions of US dollars per platform, which oil companies are often not willing to pay. As a consequence, companies often leave these platforms, or parts of them, to deteriorate.

Banks and offshore oil and gas

The severity of the climate crisis requires that banks must urgently take steps to disengage from financing all business activities and projects that continue the world's reliance on fossil fuels. Banks must therefore end support for all new offshore oil and gas projects and implement a full phase-out for financing offshore oil and gas, in line with the Paris climate agreement.

The biggest financiers of offshore oil and gas since the Paris Climate Agreement (2016-2020) are BNP Paribas (USD 29 billion), JPMorgan Chase (USD 29 billion) and Citi (USD 28 billion).

Bank policies on offshore oil and gas are assessed below. These assessments follow the methodology of our Banking on Climate Chaos 2021 report, published in March 2021. The details section in the table contains further detail on the exact scoring per bank, as well as an overview of relevant policies. 

See here for banks' exposure to the offshore oil and gas sector in 2016-2020.

Bank policy scores on offshore oil and gas

BankLast update
Country
Score
Ranking
Details
Agricultural Bank of China
2021-03-24
CHN
0
Laggard
ANZ
2021-03-24
AUS
0
Laggard
Bank of America
2021-03-24
USA
0
Laggard
Bank of China
2021-03-24
CHN
0
Laggard
Bank of Communications
2021-03-24
CHN
0
Laggard
Bank of Montreal (BMO)
2021-03-24
CAN
0
Laggard
Barclays
2021-03-24
GBR
0
Laggard
BBVA
2021-03-24
ESP
0.5
Laggard
BNP Paribas
2021-03-24
FRA
0.5
Laggard
Canadian Imperial Bank of Commerce (CIBC)
2021-03-24
CAN
0
Laggard
China CITIC Bank
2021-03-24
CHN
0
Laggard
China Construction Bank
2021-03-24
CHN
0
Laggard
China Everbright Bank
2021-03-24
CHN
0
Laggard
China Merchants Bank
2021-03-24
CHN
0
Laggard
China Minsheng Bank
2021-03-24
CHN
0
Laggard
Citi
2021-03-24
USA
0.5
Laggard
Commerzbank AG
2021-03-24
DEU
0
Laggard
Commonwealth Bank of Australia
2021-03-24
AUS
0.5
Laggard
Crédit Agricole
2021-03-24
FRA
0
Laggard
Crédit Mutuel
2021-03-24
FRA
2.5
Laggard
Credit Suisse Group
2021-03-24
CHE
0
Laggard
Danske Bank
2021-03-25
DNK
2
Laggard
DBS Bank
2020-03-01
SGP
0.5
Laggard
Deutsche Bank
2021-03-24
DEU
0
Laggard
DNB
2021-02-01
NOR
0
Laggard
DZ Bank
2021-03-24
DEU
0
Laggard
Goldman Sachs
2021-03-24
USA
0.5
Laggard
HSBC
2021-03-24
GBR
0
Laggard
Industrial and Commercial Bank of China (ICBC)
2021-03-24
CHN
0
Laggard
Industrial Bank of China
2021-03-24
CHN
0
Laggard
ING
2021-03-24
NLD
0.5
Laggard
Intesa Sanpaolo
2021-03-24
ITA
0
Laggard
JPMorgan Chase
2021-03-24
USA
0
Laggard
Jyske Bank
2021-02-01
DNK
0
Laggard
Lloyds Banking Group
2021-03-24
GBR
2
Laggard
Mitsubishi UFJ Financial Group (MUFG)
2021-03-24
JPN
0
Laggard
Mizuho
2021-03-24
JPN
0
Laggard
Morgan Stanley
2021-03-24
USA
0.5
Laggard
National Australia Bank
2021-03-24
AUS
0
Laggard
Natixis
2021-03-24
FRA
0.5
Laggard
NatWest
2021-03-24
GBR
1.5
Laggard
Nedbank Group
2021-04-22
ZAF
0
Laggard
Nordea
2021-03-24
FIN
0
Laggard
Nykredit
2021-02-01
DNK
0
Laggard
OCBC
2020-03-01
SGP
0
Laggard
Ping An Bank
2021-03-24
CHN
0
Laggard
Postal Savings Bank of China
2021-03-24
CHN
0
Laggard
Rabobank
2021-03-24
NLD
0
Laggard
Royal Bank of Canada (RBC)
2021-03-24
CAN
0
Laggard
Santander
2021-03-24
ESP
0.5
Laggard
Sberbank
2021-03-24
RUS
0
Laggard
Scotiabank
2021-03-24
CAN
0
Laggard
Shanghai Pudong Development Bank
2021-03-24
CHN
0
Laggard
Shinhan Financial Group
2021-03-24
KOR
0.5
Laggard
Skandinaviska Enskilda Banken (SEB)
2021-02-01
SWE
3
Laggard
Société Générale
2021-03-24
FRA
0
Laggard
Sparebank 1 SR-Bank
2021-02-01
NOR
0
Laggard
Standard Chartered
2021-03-24
GBR
0.5
Laggard
State Bank of India
2021-03-24
IND
0
Laggard
Sumitomo Mitsui Banking Corporation (SMBC)
2021-03-24
JPN
0
Laggard
Sumitomo Mitsui Trust Holdings
2021-03-24
JPN
0
Laggard
Svenska Handelsbanken
2021-02-01
SWE
0.5
Laggard
Swedbank
2021-02-01
SWE
0
Laggard
Sydbank
2021-02-01
DNK
0
Laggard
TD
2021-03-24
CAN
0
Laggard
Truist Financial Corporation
2021-03-24
USA
0
Laggard
UBS
2021-05-03
CHE
0.5
Laggard
UniCredit Group
2021-03-24
ITA
3
Laggard
United Overseas Bank
2020-03-01
SGP
0
Laggard
US Bancorp
2021-03-24
USA
1.5
Laggard
Wells Fargo
2021-03-24
USA
0.5
Laggard
Westpac
2021-03-24
AUS
0
Laggard
Explanation

The point-based policy ranking assesses bank policies in four ways:

1) Restriction on direct financing for offshore oil and gas projects.

  • None (0), weak exclusion (1), strong exclusion (3)

2) Restriction on financing for companies that expand offshore oil and gas.

  • None (0), weak exclusion (2), strong exclusion (4)

3) The bank’s commitment to phase-out financing for offshore oil and gas.

  • None (0), reduction (1.5), weak phase-out (3), strong phase-out (5)

4) The bank’s commitment to exclude companies active in offshore oil and gas above a certain threshold.

  • None (0), enhanced due diligence (0.5), weak exclusion threshold (2), strong exclusion threshold (5), full exclusion (6)

A bank can obtain a total of 18 policy points for its offshore oil and gas policy. Based on this score banks are then classified as laggards, followers, front runners or leaders.

Laggard
Follower
Front runner
Leader
0 - 4.5 points
5 - 9 points
9.5 - 13.5 points
14 - 18 points

 

Banks excluding finance for offshore oil and gas

A number of banks have already taken steps to fully or partially exclude offshore oil and gas projects or companies involved in offshore oil and gas operations from their investments. The table below lists banks that have taken such steps. 

Exclusion table offshore oil and gas

BankLast update
Country
Project
Company
Details
Crédit Mutuel
2021-03-24
FRA
Danske Bank
2021-03-25
DNK
Lloyds Banking Group
2021-03-24
GBR
NatWest
2021-03-24
GBR
Skandinaviska Enskilda Banken (SEB)
2021-02-01
SWE
UniCredit Group
2021-03-24
ITA
US Bancorp
2021-03-24
USA
Explanation

This table lists banks that have adopted a full ( ) or partial ( ) exclusion policy for offshore oil and gas projects and/or companies. Click on 'Details' for the rationale of this assessment for each bank.

 

Feedback welcome

Our policy assessments are always a work in progress and we very much welcome any feedback, especially from banks included in them. You can of course also contact us for more information on specific scores and the latest policy changes. Please get in touch at climate@banktrack.org.

News

| |
Type:
Year:
blog
external news
our news

Banking on Climate Chaos 2021: World’s 60 largest banks have poured USD 3.8 trillion into fossil fuels since Paris Agreement

Even amidst the global economic downturn, fossil fuel financing numbers were higher in 2020 than 2016
2021-03-24 | Nijmegen | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance, Sierra Club
blog
external news
our news

Banking on Climate Change – Fossil Fuel Finance Report Card 2020

New report reveals global banks funneled USD 2.7 trillion into fossil fuels Since Paris Climate Agreement, with financing on the rise each year 
2020-03-18 | Nijmegen | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance, Sierra Club
blog
external news
our news

UniCredit urged to do the final ‘right thing’ and drop the coal barons

2019-11-27 | Rome, Italy | BankTrack, ReCommon
blog
external news
our news

Banking on Climate Change – Fossil Fuel Finance Report Card 2019

World's top banks have poured $1.9 trillion into fossil fuel financing since the Paris Agreement was adopted, with financing on the rise each year
2019-03-20 | Nijmegen, the Netherlands | BankTrack, Honor the Earth, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Sierra Club
blog
external news
our news

Shell and Gazprom Scrap Dangerous Sub-Arctic Offshore Oil Drilling Platforms

2013-10-18 | Pacific Environment website
blog
external news
our news

NGOs seek Sakhalin compensation from Shell, UK banks (Subscription required)

2012-08-01 | Sakhalin Island, Russia | Environmental-Finance
blog
external news
our news

WestLB is the first bank to refuse finance to offshore oil rigs in the Arctic

2012-04-20 | Germany | Environmental-Finance
blog
external news
our news

Oil platform could put critically endangered whales at risk

2011-01-24 | Practical Fishkeeping
blog
external news
our news

Environmental groups condemn Japanese and French banks for financing Sakhalin II oil and gas project in Russia

2008-06-17 | Tokyo, San Fransisco, Moscow, Nijmegen | Pacific Environment
blog
external news
our news

Environmental Victory for Sakhalin II

Project sponsor announces it cannot get financing from US and UK Export Credit Agencies
2008-03-04 | London, Washington, Sakhalin | Pacific Environment
blog
external news
our news

Sakhalin II: new environmental violations brought to light

Banks once more warned for risks of being involved
2007-06-27 | United States of America | Pacific Environment
blog
external news
our news

Banks urged to back off from Sakhalin II

Sakhalin II crucial test for Equator Principles
2005-07-20 | Utrecht | Pacific Environment

Documents

Type:
Year:
our publications

Banking on Climate Chaos 2021

Fossil Fuel Finance Report
2021-03-24 00:00:00 | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance & Sierra Club
our publications

Banking on Climate Change - Fossil Fuel Finance Report 2020

2020-03-18 00:00:00 | Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club
other documents

Banking on Climate Change - Fossil Finance Report Card 2020 [Excel sheet]

Excel sheet with detailed bank policy scores
2020-03-18 00:00:00 | BankTrack, Rainforest Action Network, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club
our publications

Banking on Climate Change 2019

2019 Fossil Fuel Finance Report Card
2019-03-20 00:00:00 | BankTrack, Honor the Earth, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Sierra Club
ngo documents

Banks: High Carbon, Hidden Risks

2017-09-25 00:00:00 | Rainforest Action Network
our publications

Banking on Climate Change 2017

Fossil Fuel Finance Report Card 2017
2017-06-21 00:00:00 | Rainforest Action Network, BankTrack, Sierra Club, Oil Change International
our publications

UBS Fossil Bank Briefing 2017

2017-05-04 00:00:00 | BankTrack, Greenpeace, Waterkeeper Alliance
our publications

Credit Suisse Fossil Bank Briefing 2017

2017-04-28 00:00:00 | BankTrack and Greenpeace
our publications

Shorting the Climate

Fossil Fuel Finance Report Card 2016
2016-06-14 00:00:00 | BankTrack, Rainforest Action Network, Sierra Club, Oil Change International
csr policies

Offshore Oil Drilling and Production Policy

2012-02-01 00:00:00 | WestLB
our publications

A Challenging Climate

What international banks should do to combat climate change
2007-12-12 00:00:00 | BankTrack