Managing risks is at the core of the oil and gas industry. Over the past year, the concepts of ‘unburnable carbon’, ‘stranded assets’ and a ‘carbon bubble’, and the implied risks they pose, have been promoted by a number of groups, gaining the attention of investors, academics and the media.
IPIECA has therefore developed a factsheet which explores some of the assumptions involved in these concepts and puts them into the wider perspective of the energy system, recognizing the importance that oil and gas bring to modern living standards, economic growth and societal advancement. It also demonstrates how oil and gas companies actively manage the risks posed by climate change.
Within the factsheet, the industry describes how:
- Industry agrees with the need to address the challenges of climate change
- Oil and gas are needed to meet increasing energy demand
- There is no clear evidence of a speculative carbon bubble
- Managing risks is at the core of the oil and gas industry
The factsheet is intended for the investment community and any stakeholders with an interest in the topic.
- 12 June 2014