Oil Majors Risk Wasting $2.3 Trillion If Peak Demand Looms  

Bloomberg has an article on a recent report from Carbon Tracker claiming oil companies risk wasting $2.3 trillion of investments should demand peak in the next decade as the world works toward its goal of limiting global warming - Oil Majors Risk Wasting $2.3 Trillion If Peak Demand Looms.

“There are clear signs that oil demand could peak in the early 2020s -- so companies need to start taking project options that would come on stream then off the table, and be transparent about how they are aligning with a low carbon future,” James Leaton, Carbon Tracker’s research director, said in the report. “Sticking with the growth at all costs scenario just doesn’t add up for shareholder value when the policy and technology momentum is heading in the opposite direction.”

The companies are already facing some pressure from investors. Last month, Exxon shareholders, in a split with the company, urged the explorer to publish a detailed analysis on how carbon curbs could affect the value of its oil fields, refineries and pipelines. While Shell investors voted against a resolution asking the company to publish targets for reducing greenhouse gas emissions, it continues to face demands to raise investment in renewable energy and cut down on oil and gas.