Fossil fuels face ever increasing regulatory and market risks as countries and communities take action on climate change, begin to put limits on carbon emissions and take steps to protect our precious water resources.
Oil and gas companies are putting hundreds of billions of dollars at risk each year by developing high-cost, high-carbon reserves that may never be economic to extract due to climate change and carbon emissions reductions. From the oil sands in Canada to the deepwater deposits below the oceans, the financial risks of these fuels, known by investors as carbon asset risk is a growing concern.
In the United States, hydraulic fracturing, or ‘fracking’, has been a truly disruptive technology, both in driving the growth of the “shale revolution” and through the profound risks it poses to America’s water resources.
In the meantime, clean energy solutions like wind, solar, electric vehicles and next-generation biofuels hold significant promise, both for investors looking to mitigate risks in their long-term investments and for companies looking to remain competitive in the growing low-carbon economy.
Ceres works closely with investors, regulators and public interest groups to improve disclosure by oil and gas companies and address the ever-increasing risks and opportunities associated with energy production -- including methane emissions and addressing carbon asset risk.
Ceres also helps investors analyze key trends in water use and water risk exposure in the oil and gas sector by region and operator. We produce pioneering research on the impacts of shale energy production on vulnerable water supplies—and the actions and leadership needed from investors and companies to protect water supplies, especially in water stressed regions.
In addition, companies in Ceres BICEP Network advocate for innovative climate and energy policies that will help reduce our reliance on fossil fuels and advance a low-carbon economy.
The bottom line is, if oil and gas companies want to survive the transition to a low-carbon economy, the industry must pivot away from high risk, carbon-intensive fuels to clean energy sources and low-carbon technologies.
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