The UN’s climate change secretariat (UNFCCC) said this year’s talks were a “last chance” to keep global warming to within 1.5C. Fossil fuel prices have surged as a result of the Ukraine war, allowing oil and gas companies to reinvest record profits.

However, these companies have come under repeated calls from the United Nations to phase out hydrocarbons to avoid a climate crisis. Data and industry executives have found that the exploration revival is driven by investor pressure to maximise profits in the higher margin oil and gas business.

The International Energy Agency has predicted global upstream oil and gas investments to increase by 11% to $528bn by 2023, while predictors such as Barclays estimate the number of offshore projects to reach a 10-year high.

Companies such as Shell and BP have slowed down their plans to invest in renewables, due to the higher returns in the oil and gas industry. Wood Mackenzie analysts predict offshore exploration and drilling activity to increase by 20% by 2025.

The research and consultancy group also anticipates the commitment of up to $185bn to develop 27 billion barrels of oil reserves. In addition, Nambia has recently attracted strong investment interest from Shell and TotalEnergies.

In China, there have been calls for more coal-fired power plants due to economic growth plunging and shortages causing blackouts and factory shutdowns. Beijing is still pushing for a shift to renewable energy, while also constructing an ever-growing number of coal-fired plants.

Global temperatures have hit new records as the target of keeping long-term global warming within 1.5C (2.7F) moves out of reach. The United Nations has warned of “collective suicide” if humanity fails to work together to battle against global warming. The UNFCCC has said that this year’s talks are a “last chance” to keep global warming to within 1.5C.

These developments have underlined the need for oil and gas companies to transition away from hydrocarbons and invest in renewable energy businesses in order to avoid further climate crisis. It is clear that a shift to renewable energy is the only way to ensure a sustainable future and avoid global warming.