The world’s biggest oil companies are systematically over-valuing their assets based on excessively optimistic forecasts of future prices, according to a leading investor. UK asset manager Sarasin & Partners has asked the oil companies in which it invests, BP, Shell and Total, to reveal the full risk they face should demand for crude peak as the trend towards decarbonisation grows. Sarasin oversees almost £14bn of investments, including funds from many top charities. The Paris Agreement to cut emissions and limit global warming has led many in the energy industry to argue that crude demand will peak within the next 20 years, with electric cars and renewables expected to challenge oil’s dominance.
FT 5th Aug 2018 read more »
A group of senior geologists has called for an immediate moratorium on oil and gas exploration in the area of Surrey affected by 12 earthquakes in the past four months. In a letter in this morning’s Times newspaper, senior lecturer Stuart Gilfillan and professor Stuart Haszeldine, both of University of Edinburgh, and emeritus professors Bill McGuire and Richard Selley, said: “The abrupt onset of the earthquake cluster recorded by the British Geological Survey at Newdigate since 1 April 2018 requires an explanation, and gives rise to our concerns about safety. We believe that public health and the environment are not being adequately protected given the unstable geology, which has not been identified before permits were issued for the currently active drill sites.” They have written to the Business Secretary, Greg Clark, and regulators of the oil and gas industry urging them to address the issue urgently.
Drill or Drop 6th Aug 2018 read more »
