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Exxon Mobil Corporation Message Board

  • bluecheese4u bluecheese4u Jun 15, 2013 2:03 AM Flag

    Economist: Climate change a financial threat to oil companies

    Economist: Climate change a financial threat to oil companies

    Posted on June 15, 2013 at 12:01 am by Zain Shauk

    Energy companies are facing the prospect of physical and financial losses because of climate change, and the oil industry needs to take the threat more seriously, the chief economist of the International Energy Agency said Friday.

    “When there is global warming, this will result in much more frequent cyclones, floods and storms,” Fatih Birol told FuelFix. “And this will affect the infrastructure of energy companies — we think especially for the offshore oil and gas production, in the North Sea, Western Australia, the Gulf of Mexico.”

    The implications of climate change will extend beyond direct physical damage, Birol said.

    “Even if there was no storm or anything happening, companies have to increase the resilience of the infrastructure, which in turn means that the cost of capital will go up,” he said. “So the energy companies, even if they don’t want to solve the problem, they cannot afford to ignore climate change being part of their decision-making for their investment strategies.”

    Oil CEO: Humans are involved with climate change

    Birol spoke with FuelFix following a report the Paris-based agency released this week warning that the world is not on track to prevent a dangerous increase in global temperatures — and that energy companies are key players.

    “About two-thirds of the global emissions come from the energy sector, so if the energy companies and governments do not move, it will be impossible to address the problem,” Birol said.

    World governments, including those of leading polluters China and the United States, have agreed that to avoid harmful env

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