Oil companies are desperate to stick to business as usual and tend to fight decisive climate action as much as they can. This makes sense if one understands that the valuation of their shares is calculated off the amount of proven reserves an energy company owns. And despite the push for climate action, most fossil fuel producers show no intention of cutting back on their exploration and development of new fields. According to Rystad UCube, capital expenditures (Capex) of oil and gas producers are expected to rise by 85% over the coming decade and will eventually reach more than $1tn per year. Much of the exploration and development will take place in areas that have not been developed so far,
Investing in stranded assets
Investing in stranded assets
Investing in stranded assets
Oil companies are desperate to stick to business as usual and tend to fight decisive climate action as much as they can. This makes sense if one understands that the valuation of their shares is calculated off the amount of proven reserves an energy company owns. And despite the push for climate action, most fossil fuel producers show no intention of cutting back on their exploration and development of new fields. According to Rystad UCube, capital expenditures (Capex) of oil and gas producers are expected to rise by 85% over the coming decade and will eventually reach more than $1tn per year. Much of the exploration and development will take place in areas that have not been developed so far,