Companies both big and small, along with governments, environmentalists, and scientists around the globe consider the climate change to be a major cause for concern. Climate change occurs as a result of increase in greenhouse gas emissions and exploitation of natural resources for economic growth. This phenomenon can disrupt existing eco-systems, endanger plant and animal species, and disrupt economies. This is the reason why people are paying attention to the effects of climate change and encouraging steps for better energy management and efficiency. This article highlights the impact of climate change on the operations of oil and gas companies and economies around the globe.
ExxonMobil Agrees To Outline Climate Risks
In a recent development, the largest public sector oil and gas company, ExxonMobil agreed to outline climate risks following pressure from its investors. Many oil and gas companies around the world are investing in tar sands and deep-water exploration to find energy reserves.
Investors want to ensure that companies don’t invest in risky oil exploration projects in remote areas. They are concerned about the costs involved with finding new oil fields along with ensuring good returns from the company.
Mike Scott said in a recent article:
“According to the International Energy Agency, two thirds of the world’s current fossil FOSL -1.01% fuel reserves must remain unburnt to allow us to stay within emissions limits that will allow us to limit temperature rises to 2ºC.”
Investors are expecting leading oil and gas companies like ExxonMobil to take steps to be more environment-friendly.
Scientists Claim The Earth Faces Risk of Irreversible Climate Change
This growing concern is echoed in a recent report released by scientists of the American Association for the Advancement of Science. They are emphasizing the need for immediate action to reduce burning of fossil fuel and carbon emissions.
Suzanne Goldenberg quoted some of the findings of the report in a recent article:
“There is a risk of abrupt, unpredictable and potentially irreversible changes in the earth’s climate system with massively disruptive impacts”.
Climate change continues to be a growing concern around the globe. This article emphasizes some of the impacts of climate change and why it necessitates action from companies and governments around the world.