Published By : 02 Apr 2014 | Published By : QYRESEARCH
Exxon Mobil Corp., the largest oil company to be publically traded stated on Monday that it expected climate change risks to have a minimum impact on its reserves of oil and gas. This was because these resources would be required to meet the demand for energy; a demand that is only expected to grow in the years to come.
The company was replying to queries posed by shareholder activists. Further, the company also stated that it was ‘confident’ that its reserves of oil and gas would not depreciate in value, nor would these reserves be ‘stranded’ in the event that governments decided to cut carbon emissions.
The company said in a report that its assets were integral to meeting the growing demand for energy at the global level. This was especially true for meeting the developmental aspirations of developing economies that are on the path to unprecedented growth. The report was published in response to a call from its activist shareholders.
Earlier in March, Exxon Mobile, which is headquartered in Irving, Texas, had agreed to elaborate on the risks posed by climate change to its carbon assets. These details would be published in exchange of a shareholder proposal being withdrawn on this issue.
The resolution was earlier filed by investors from the firms Arjuna Capital and As You Sow. These firms had cited studies and reports which suggested that in the coming years, lower prices or demand for fossil fuels might be observed owing to more stringent carbon regulation that might result from climate change.
In its long-term outlook that was previously published, Exxon had estimated that the world would need nearly 35% more energy by 2040, and emission of greenhouse gases will likely plateau by this time.