Stranded Assets’ Risk Rising With Climate Action and $40 Oil

Stranded Assets’ Risk Rising With Climate Action and $40 Oil

When you see a half-constructed building that's been abandoned, it's a sign the project no longer made economic sense. There's an argument that trillions of dollars' worth of investments to tap new supplies of oil and gas might suffer the same fate, leaving deposits of oil in the ground and turning them into what are known as “stranded assets.” What had seemed like an abstract debate has been made very real by the sharp drop in oil prices in 2020, leading some major companies to shift plans away from fields where drilling is costlier or whose deposits are more carbon intensive.Support our journalism. Subscribe today.arrow-right1. What are stranded assets?Some analysts and investors are warning energy companies that there's a real risk the value of their projects to develop new fields