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Oil companies and stranded assets
Posted: 10 Jul 2014, 13:47
by biffvernon
What the oil companies think about the risks of assets being stranded as a result of climate change:
http://www.carbonbrief.org/blog/2014/07 ... bon-bubble
Posted: 10 Jul 2014, 14:40
by PS_RalphW
It will still be good business for big oil/coal companies to spend half their expected 'stranded asset' losses from environmental legislation constraining carbon emissions in opposing that legislation by any means available. In fact, they are legally required to do so, in order to maximise their shareholder's returns.
In other words, financial law requires corporations to maximise global environmental devastation.
Posted: 11 Aug 2014, 16:20
by biffvernon
"The world’s leading oil and gas companies are taking on debt and selling assets on an unprecedented scale to cover a shortfall in cash, calling into question the long-term viability of large parts of the industry."
Nice to read this in the Telegraph:
http://www.telegraph.co.uk/finance/news ... -cash.html
There's really a great deal of interesting data and analysis thereof in that article. It's a window into how the Peak Oil crisis that we've been talking about for several years is actually rolling out.
Posted: 11 Aug 2014, 19:19
by Lord Beria3
Yes, a very good article Biff.
Ambrose has always been very good on PO and certainly worth reading.
Posted: 11 Aug 2014, 21:58
by biffvernon
Posted: 13 Oct 2014, 17:40
by biffvernon
http://www.theguardian.com/environment/ ... bon-bubble
The governor of the Bank of England has reiterated his warning that fossil fuel companies cannot burn all of their reserves if the world is to avoid catastrophic climate change, and called for investors to consider the long-term impacts of their decisions.
According to reports, Carney told a World Bank seminar on integrated reporting on Friday that the “vast majority of reserves are unburnable” if global temperature rises are to be limited to below 2C.
Carney is the latest high profile figure to lend his weight to the “carbon bubble” theory, which warns that fossil fuel assets, such as coal, oil and gas, could be significantly devalued if a global deal to tackle climate change is reached.
The movement has gained traction in recent weeks, with the World Bank leading an initiative with 73 national governments, 11 regional governments, and more than 1,000 businesses and investors to build support for a global price on carbon emissions during the United Nations climate summit in New York.
Posted: 16 Nov 2014, 16:47
by biffvernon
Posted: 21 Nov 2014, 08:49
by biffvernon
The carbon bubble has sprung a leak. Norway divests.
http://gofossilfree.org/europe/klp-divest-coal/
Posted: 21 Nov 2014, 11:16
by emordnilap
Wohoo! Excellent. “We are divesting our interests in coal companies in order to highlight the necessity of switching from fossil fuel to renewable energy.” Brilliant.
Posted: 21 Nov 2014, 13:10
by biffvernon
It's only one finger out of the dyke but Norway has the world's biggest sovereign wealth fund and little leak could develop into a torrent when the horses get frightened.
Posted: 10 Dec 2014, 16:01
by emordnilap
And more good news
Mark Carney, governor of the UK’s central bank, has written to British Members of Parliament telling them that his officials have been discussing whether or not coal, oil and gas reserves held by the fossil fuel industry are, in fact, unburnable.
Although this is only the UK, it could be a heavyweight 'domino'. Let's hope.
Posted: 10 Dec 2014, 16:06
by PS_RalphW
If the price of oil stays this low, a large percentage of the world's official 'proven oil reserve' should be reclassified as 'oil resource' on the basis that it cannot be economically extracted.
Of course it will not be.
Posted: 10 Dec 2014, 19:45
by biffvernon
If there's any credence in the speeches from a procession of world leaders at Lima this afternoon, one can only conclude that most of the carbon assets will be stranded. Even Venezuela is banning fracking.
Posted: 11 Dec 2014, 14:11
by emordnilap
A climate change glossary
Which pretty much shows how words are
much more important than actions.
Posted: 12 Dec 2014, 15:32
by emordnilap
Lima climate talks agree on just one paragraph of deal with 24 hours left
Serves us all right for sending 'negotiators'. We cannot trust even a single word they use.
Mind you, they all probably had a fantastic wee junket.
