WoodMac Warns Half Of Big Oil Output May Be Hit By Carbon Costs
As much as up to 50 percent of the production of oil majors could be hit by carbon costs in the next ten years if legislators that currently price carbon extend the policy to the upstream sector, Wood Mackenzie said in a new report on how oil majors would respond to the global energy transition and rising pressure for low-carbon energy.
Wood Mackenzie has identified three main risks that the majors would be facing with the global drive to switch from fossil fuels to low-carbon energy: the growth in the renewables industry, intensified carbon policy, and growing low-carbon competition.
The energy consultancy predicts that demand for coal and oil could peak well ahead of 2035, while natural gas and zero-carbon fuels would meet at least 60 percent of the rise in the world’s energy demand until 2035.
This post was published at Zero Hedge on Nov 21, 2016.