ExxonMobil Corp. and Saudi Basic Industries Corp. (Sabic) Gulf Coast Growth Ventures petrochemical complex under construction in Gregory, Texas, U.S., on Wednesday, July 28, 2021.
Eddie Seal | Bloomberg | Getty Images
LONDON — The world’s largest oil and gas majors are seeking to lure back investors by returning more cash to shareholders. Market participants, particularly those looking to the long term, remain highly skeptical.
It comes at a time when oil and gas companies are raking in their highest profits since the onset of the coronavirus pandemic amid a sustained period of stronger commodity prices.
A robust showing in the three months through June built on better-than-expected first-quarter earnings and lent further support to the industry’s efforts to pay down debt and reward investors.
In the U.S., ExxonMobil said late last month that it would back shareholder returns through its dividend and Chevron announced it would resume share buybacks at an annual rate of between $2 billion to $3 billion.
In Europe, meanwhile, the U.K.’s BP, France’s TotalEnergies, Norway’s Equinor, Italy’s Eni and Anglo-Dutch oil giant Royal Dutch Shell all announced share buyback programs or increased dividend payouts — or both. It reflects a broader industry trend of energy majors seeking to reassure investors that they have gained a more stable footing amid the ongoing Covid-19 crisis.
Share buybacks are designed to boost the firm’s stock price, benefiting shareholders. Dividend payments, meanwhile, reflect a token reward to shareholders for their investment. Both are options available to a company seeking to reward investors.
These investments are likely to become stranded assets, and investors don’t want to be left holding the bag.
Kathy Hipple
Finance professor at Bard College
Ahead of the second-quarter results, energy analysts had warned that Big Oil still faced a host of uncertainties and challenges. Some of these include the remarkable success of shareholder activism in recent months, a “tremendous degree” of ongoing investor skepticism and intensifying pressure to massively reduce fossil fuel use.
“Day traders may reap short-term profits, but serious long-term investors have concluded that the old energy of the past — oil and gas extraction, is just that — old, with a sell-by date that is moving closer by the day,” Kathy Hipple, finance professor at Bard College in New York, told CNBC via email.
“Once institutional investors determine that demand has peaked — which likely has already happened — they will abandon the sector permanently,” she added. “Many already have, based on the stock performance of the sector over the past several years.”
IPCC report a ‘death knell’ for fossil fuels
The energy sector, alongside financials, is one of this year’s top performers on the S&P 500, up almost 30% year-to-date. Yet, share prices of many oil majors continue to trail the earnings outlook considerably.
In the U.K., for instance, BP has seen its stock price climb nearly 20% so far this year, but the oil and gas giant recorded a collapse of more than 47% in 2020. BP has previously described 2020 as “a year like no other” due to the impact of the Covid-19 crisis on global energy.
Oil prices have since rebounded to near $70 a barrel and all three of the world’s main forecasting agencies — OPEC, the IEA and the U.S. Energy Information Administration — expect a demand-led recovery to pick up speed through to 2022.
Hipple said that savvy long-term investors would shy away from oil and gas majors “unless and until” they fully acknowledge the climate crisis. “These investors understand that the oil majors are still investing tens of billions in unnecessary oil and gas infrastructure, ignoring the IEA findings that no additional infrastructure is possible to meet a 1.5 [degrees Celsius] scenario,” Hipple said, referring to a critically important target of the Paris Agreement.
“These investments are likely to become stranded assets, and investors don’t want to be left holding the bag.”
Last week, the world’s leading climate scientists delivered their starkest warning yet about the deepening climate emergency. The Intergovernmental Panel on Climate Change’s landmark report warned a key temperature limit of 1.5 degrees Celsius could be broken in just over a decade in the absence of immediate, rapid and large-scale reductions in greenhouse gas emissions.
U.N. Secretary-General, António Guterres, described the report’s findings as a “code red for humanity,” and said it “must sound a death knell” for coal, oil and gas.
Energy majors are typically still overwhelmingly reliant on oil and gas revenues for their earnings — a concept that is irreconcilable to the demands of the climate emergency.
“We frankly just don’t think these are very good businesses,” David Moss, head of European equities at BMO Global Asset Management, told CNBC’s “Street Signs Europe” on Friday.
European energy majors are currently generating “very strong” cash flow following a sustained rebound in oil prices, Moss said, but noted that many are choosing to keep spending relatively tight rather than invest in future production projects.
“With the oil companies, we still just don’t think they represent good long-term businesses,” Moss said. “They don’t generate consistent returns on capital or cash flow, albeit at the moment they look to be in a pretty good place.”
Not everyone is as downbeat on the outlook for the oil and gas industry, however.
Rohan Reddy, analyst at Global X, a New York-based provider of exchange-traded funds, says there are currently a number of positive signs for energy majors, citing rising stock prices, an upswing in second-quarter earnings and increased shareholder distributions.
“Right now, the energy sector is the best performing one within the S&P 500 and many European markets, and even though some of the big majors like BP and Shell have lagged the broader energy sector, we think right now that’s just due to hesitancy around the delta [Covid] variant,” Reddy told CNBC on Aug. 11.
“We think there is going to be a lot more investors starting to pile into to some of those big energy names.”
California’s ambitious statewide electric bicycle incentive program is officially dead – and it didn’t even get a funeral. After years of buildup, delays, and surging public interest, the California Air Resources Board (CARB) has quietly ended the program, rolling the remaining $17 million of the original $30 million budget into its “Clean Cars 4 All” initiative without even making an official announcement.
The California E-Bike Incentive Project was originally hailed as a groundbreaking effort to make electric bikes affordable for low-income residents. Vouchers – not rebates – were designed to let buyers walk into a participating shop and ride out without covering the full price upfront. Base vouchers were worth $1,000, with up to $2,500 available for those purchasing cargo or adaptive e-bikes in priority communities. It was a model that other states were watching closely.
But from the outset, the program was plagued by setbacks. Years of delays meant the first vouchers weren’t distributed until late 2024, and even then, only after a chaotic launch that saw the website crash under the weight of tens of thousands of applicants vying for just 1,500 vouchers. A second launch attempt in April 2025 failed completely, locking out eligible users. While a final distribution round in May went more smoothly, an estimated 90% of eligible applicants were turned away due to limited supply.
To make matters worse, the program’s administrator, Pedal Ahead, came under fire for questionable practices in San Diego, further undermining confidence.
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Now, with no formal announcement or update on the program’s official website, CARB has quietly absorbed the funds into its Clean Cars 4 All program.
Electrek’s Take
This is an enormous letdown.
The California E-Bike Incentive Project had the potential to reshape car-heavy communities by giving low-income Californians access to clean, affordable micromobility. Instead, it was starved by mismanagement and then cannibalized to prop up car-centric policy.
It’s not that electric cars don’t deserve support, but this move reflects a broader failure of imagination. If we want a future with fewer cars, not just cleaner ones, then we need to start funding real alternatives. This was a huge missed opportunity to invest in a more livable California.
The Kia EV4 will be “delayed until further notice” in the US, according to a Kia rep and reported by InsideEVs. Kia said the change is because “market conditions for EVs have changed.”
The EV4 was expected to be released in 2026 at a price in the ~$30k range, entering Kia’s model like alongside the existing EV3 as the smaller, more affordable electric models below the EV6 and EV9. The EV4 will have the style of a boxy sedan, while the EV3 is a small SUV.
The EV3 is already available in Korea, Europe and other territories, but has not made it to the US (and may not ever).
Bringing that car to a US auto show with an official reveal suggested that the US would get access to this smart, more affordable Kia. And Kia said that the car would hit US roads in early 2026, which would have been just a few months from now.
Kia abruptly “delays” EV4’s introduction to the US
But now, a Kia rep has confirmed that the car won’t come to America after all, at least until further notice. Kia gave a statement to InsideEVs, saying:
“Kia’s full range of vehicles offers meaningful value and inspiring performance to customers. However, as market conditions for EVs have changed, the release of the upcoming EV4 electric sedan will be delayed until further notice.”
We reached out to Kia to confirm, and received the same statement back.
The reversal is a bit of a surprise, and we’re not sure why we’re hearing this today in particular. Heck, we wrote a story about the EV4 GT’s interior just a couple hours ago.
So, unfortunately it looks like Americans will have one less potential choice to get away from the land-yacht disease currently infecting our populace. For what it’s worth, the EV4 is still listed as “coming 2026” on Kia Canada’s website.
We’ve seen models get delayed suddenly before, and while Kia did not directly say that the model will never come to the US, the fate of other “delayed” EV models in the past does not give us significant hope. Usually, a “delay” like this ends up meaning that the car just won’t ever make it to US roads (see: VW ID.7, Gen 2 Kia Soul EV, Ram 1500 EV, and others).
While Kia did not state a specific reason for the reversal, it’s not hard to guess what some of the influences are.
Electrek’s Take – EV4 likely delayed due to US policy changes favoring higher costs, dirty air
Many companies have recently cited a claimed but not substantiated lack of EV demand in the US as reasons for delaying their EV ambitions. To be clear, EVs have seen a long string of consistent sales growth in the US, stretching back more than a decade (with only a few interruptions to that growth, the largest being the start of COVID).
But this likely drop in demand is hitting right around the same time the EV4 was supposed to launch in the US, so it’s not unreasonable for Kia to look at a market in a temporary downswing, especially when considering all the other factors laid out above (and the country’s current hostility to foreign investment, specifically investment from Kia’s partner company Hyundai), and wonder why they’ve gotten cold feet right now of all times.
While Kia didn’t lay out these reasons above in its statement, it sure seems likely that each of them could have had an effect on this decision.
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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New data from the Solar Energy Industries Association (SEIA) shows that the US solar supply chain has been fully reshored, with manufacturing capacity growing across every part of the solar and storage sector.
A US solar system from start to finish
With Hemlock’s new ingot and wafer facility coming online in Q3 2025, the US can now produce every major solar component domestically, from polysilicon to modules. According to SEIA, 65 new or expanded solar and storage factories have come online this year, bringing $4.5 billion in private investment to US communities.
However, SEIA warns that more than 100 factories and $31 billion in the pipeline could be at risk if the Trump administration continues its attacks on solar energy.
Solar manufacturing is booming – for now
The SEIA Solar & Storage Supply Chain Dashboard reports major capacity growth across every segment since late 2024. As of October 2025, US module production capacity has surpassed 60 gigawatts (GW), a 37% increase from December 2024. Solar cell production has more than tripled, jumping from 1 GW to 3.2 GW.
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Battery cell manufacturing for stationary storage has climbed to over 21 gigawatt-hours (GWh), which SEIA says is enough to power the city of Houston from sunset to sunrise.
“This growth is a testament to the power of American innovation,” said Abigail Ross Hopper, SEIA’s president and CEO. “We’re building factories, hiring American workers, and showing that solar energy means made-in-America energy.”
Inverter manufacturing, which converts solar power into usable electricity, has jumped nearly 50% since the end of 2024, rising from 19 GW to 28 GW of capacity. Mounting system production is also up 14%, with 23 new factories added since 2024.
A pipeline under political threat
The US solar pipeline remains strong, with 23 GW of new module capacity, 34 GW of cell capacity, 25 GW of inverter capacity, and 95 GWh of battery cell capacity either under construction or announced. But SEIA says that Trump administration policies, regulations, and trade actions are creating uncertainty that could hurt progress.
“We’re seeing strong growth today, but that momentum isn’t guaranteed,” Hopper said. “If the administration continues down this path, they risk driving investment overseas, stifling job creation, raising costs on consumers, and handing America’s manufacturing advantage to our competitors.
“If the administration does not reverse its harmful actions that have undermined market certainty, energy costs will rise even further, and the next wave of factories and jobs could be at risk.”
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.