The Energy Report: The Real Economic Risk Of Climate Change – Investing.com

The Energy Report: The Real Economic Risk Of Climate Change – Investing.com

Oil prices are coming to terms with bullish short-term and long-term fundamentals. Not only are we seeing signs that forward demand for all oil and products are getting uncomfortably tight in the short term, we are seeing a rising risk of shortages in the long term. The biggest economic risk for climate change isn't hurricanes or droughts, but the global pullback in investment in traditional fossil fuels.

 

The decision by the Netherlands court that ordered Shell (LON:) to cut its absolute carbon emissions by 45% by 2030 compared with 2019 levels is just one of many attacks on fossil fuel production that is not well thought out. Historic drops in capital spending and net-zero emission concerns while the world will start breaking records for demand is an absolute economic calamity waiting to happen. S&P global reported Exxon Mobil (NYSE:) and Chevron (NYSE:) at annual meetings held May 26 faced their strongest push back yet from climate-focused investors urging the oil and gas drillers to “start facing the future” by shifting to lower-carbon technologies and preparing for sharply lower fossil fuel demand.