Oil companies and stranded assets

biffvernon · Post by **biffvernon** » 10 Jul 2014, 13:47

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

PS_RalphW · Post by **PS_RalphW** » 10 Jul 2014, 14:40

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.

biffvernon · Post by **biffvernon** » 11 Aug 2014, 16:20

"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.

Lord Beria3 · Post by **Lord Beria3** » 11 Aug 2014, 19:19

Yes, a very good article Biff.

Ambrose has always been very good on PO and certainly worth reading.

biffvernon · Post by **biffvernon** » 11 Aug 2014, 21:58

And here's Richard Heinberg on the same theme today:
http://ecowatch.com/2014/08/11/enviros- ... ck-bubble/

biffvernon · Post by **biffvernon** » 13 Oct 2014, 17:40

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.

biffvernon · Post by **biffvernon** » 16 Nov 2014, 16:47

Interview with Jeremy Leggett: http://www.youtube.com/watch?v=de1Xejr6 ... e=youtu.be

biffvernon · Post by **biffvernon** » 21 Nov 2014, 08:49

The carbon bubble has sprung a leak. Norway divests. http://gofossilfree.org/europe/klp-divest-coal/

emordnilap · Post by **emordnilap** » 21 Nov 2014, 11:16

biffvernon wrote:The carbon bubble has sprung a leak. Norway divests. http://gofossilfree.org/europe/klp-divest-coal/

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.

biffvernon · Post by **biffvernon** » 21 Nov 2014, 13:10

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.

emordnilap · Post by **emordnilap** » 10 Dec 2014, 16:01

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.

PS_RalphW · Post by **PS_RalphW** » 10 Dec 2014, 16:06

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.

biffvernon · Post by **biffvernon** » 10 Dec 2014, 19:45

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.

emordnilap · Post by **emordnilap** » 11 Dec 2014, 14:11

A climate change glossary

Which pretty much shows how words are much more important than actions.

emordnilap · Post by **emordnilap** » 12 Dec 2014, 15:32

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.