• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 17 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 11 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 4 hours Starvation, horror in Venezuela
  • 12 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 24 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 5 hours China goes against US natural gas
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 6 hours Why hydrogen economics does not work
Oil Demand Growth Starts To Weaken In Asia

Oil Demand Growth Starts To Weaken In Asia

Oil demand from Asia’s key…

$1 Trillion in Fossil Fuel Projects Threatened from Climate Action

A new report from the Carbon Tracker Initiative (CTI) finds that there is $1 trillion worth of fossil fuel projects expected over the next decade that could be thrown into doubt if governments begin to take action to curb greenhouse gas emissions.

The concept known as the “carbon bubble,” largely put forward by CTI, is based on the notion that in order for the world to avoid the worst effects of climate change, global greenhouse gas emissions will have to be cut back significantly. If action is indeed taken – say through carbon pricing – investors stand to lose billions if not trillions in misallocated capital expenditures.

Previous research from CTI found that about two-thirds of the booked reserves from the world’s largest fossil fuel companies – reserves that these companies expect to produce – cannot be burned. The latest report puts a dollar figure on that amount – an estimated $1 trillion over the next decade. By 2050, that figure balloons to $21 trillion.

Related Article: White House Targets Methane Emissions

CTI found that the most at-risk region in the world was Alberta, with its abundant reserves of oil sands. Canada is expected to see $400 billion worth of investment through 2025, much of which could be put at risk if the world constrains carbon. Other areas include ultra-deepwater projects such as offshore Brazil or the Arctic.

It is far from clear that countries will actually find the resolve to enact strict limits on carbon pollution, but CTI argues that fossil fuel companies have a lot at stake in ensuring that they do not. ExxonMobil recently said that it was “highly unlikely” that the world would cut emissions significantly. “We are confident that none of our hydrocarbon reserves are now or will become ‘stranded,’” the company wrote in a report this year on risks to its business.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • David Hrivnak on May 12 2014 said:
    Before we stop/slow the extraction of oil we first must make the move to electric cars. This will happen but any such large change will take many years at best.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News