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Enviros Try To Scare Investors Away From Oil Stocks

From a gleeful Reuters:

Climate rules could put $1.1 trillion in oil investment at risk – report

By Ben Garside | May 7, 2014

LONDON (Reuters) – Investors could spend up to $1.1 trillion over the next decade on oil projects and assets that never reach production if governments enforce measures to curb climate change, a report by Carbon Tracker Initiative said. The Carbon Tracker report, released on Thursday, could help funds and other investors avoid putting their money in oil assets that remain buried forever.

In other words, these leftists are trying to scare investors away from any energy investments. In fact, the group behind this ‘study,’ the Carbon Tracker Initiative, are leading the ongoing fossil fuels ‘divestment campaign’ in Europe and now the US.

The Carbon Tracker Initiative have even gone so far as to invent a concept, the ‘carbon bubble,’ which they came up with back in July 2011. And by which they hope to try to scare investors into thinking they were going to lose money when the ‘carbon bubble’ bursts.

Because the demand for fossil fuel is going to dry up due to carbon regulations, don’t you know.

The $1.1 trillion, around 15 percent of the decade’s total global oil and gas spending at current rates, is earmarked for projects to 2025 that require a market price of at least $95 a barrel to break even.

That investment is at risk if governments enforce plans to curb the global rise in temperatures to 2 degrees Celsius, which scientists say is the threshold for avoiding the worst effects of climate change… Those measures will cut demand for fossil fuels including oil and lower prices and revenues, according to the report…

Yes, because there is one thing we know for sure — the demand for fossil fuels will never go up. Because even if you don’t burn them in your car, you won’t want to make plastic or anything else out of them.

“Gambling on a $95/bbl oil price on behalf of shareholders is risky, given that oil prices have dropped to $40 per barrel twice in the last decade,” James Leaton, Carbon Tracker’s research director, said in a statement released on Thursday…

And never mind that the only reason the price of oil has dropped has been to increased production, especially in the US with its fracking. (Despite Obama’s efforts to stop it.)

The oil industry is coming under increasing pressure from investors to reduce exposure to high-cost, risky projects and also to report the risks to their business from climate policies.

"The Carbon Tracker report will be useful to investors engaging oil companies on whether they are using shareholder capital prudently as we transition to a lower-carbon future," Anne Stausboll, chief executive of Calpers, the largest U.S. public pension fund in the United States, said in a statement…

We hope the retirees in California appreciate they are losing money because of ‘green’ politics.

The Carbon Tracker Initiative is funded by several U.S. and European foundations, including the Rockefeller Brothers Fund and the Joseph Rowntree Charitable Trust.

The Rockefellers? That’s oil money, isn’ it?

This article was posted by Steve Gilbert on Friday, May 9th, 2014. Comments are currently closed.

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