The fossil fuel industry risks losing $33 trillion in revenue over the next 25 years as global warming may drive companies to leave oil, natural gas and coal in the ground, according to a Barclays energy analyst.
As Bloomberg reports, Barclays researcher Mark Lewis told a panel discussion in New York on Monday that government regulations and other efforts to cut carbon emissions will inevitably slash demand for fossil fuels, jeopardizing traditional energy producers. His comments are part of a growing chorus calling for more transparency from oil and gas companies about how their balance sheets may be affected by the global shift away from fossil fuels.
As governments adopt stricter environmental policies, there’s increasing risk that companies’ untapped deposits of oil, gas and coal may go unused, turning valuable reserves into stranded assets of questionable value.
“There will be lower demand for fossil fuels in the future, and by definition that means lower prices” Lewis said.
The forum on Monday focused on the financial risks from climate change and was organized by the Task Force on Climate Related Disclosures, a group established last year by Bank of England Governor Mark Carney and led by Bloomberg majority owner and founder Michael Bloomberg.
