Phew, what an exciting week in climate news!
Background:
As has been discussed in some other threads, the oil majors are in a bind. Many analyses of future markets suggest a peak and slow decline in future global oil demand, which is rather different than the forever growing demand they have been projecting for decades. As in their shiny 'World Energy Outlook' reports.
It seems plausible this will, in the long term, affect their profits, investment strategy, dividends and perhaps viability.
And the SEC rules require, that if they perceive such a threat to their business model, they need to share the results of such an analysis with shareholders.
Several oil majors like Total and Shell have made public statements to the effect that they expect global oil demand to peak in the next five or ten years, due to increases in usage efficiency and the rise of affordable electric vehicles, EVs. Much of the majors projected future growth was in gasoline autos in the developing world. Obviously, climate policies around the world will promote and speed this tech disruption of the oil economy.
And then there's Exxon.
Exxon mgmt has flatly denied that there is any risk of demand disruption in the forseeable future, for any reason (efficiency, EVs or climate concerns). Last year Exxon CEO Rex Tillerson asserted that 'There is no alternative to oil'. So oil demand is secure. Period.
In a CYA move, they put the decision to do a 'peak demand' analysis to the shareholders at their annual meeting, in Dallas. At last years meeting (and previously), the motion was voted down...no analysis.
Of course, it seems possible that **someone** in the company would have performed an analysis that many of Exxon's peers have performed, probably years ago. If the results were unfavorable (and deemed possible) then not sharing it with shareholders is a legal violation. This is the basis of a lawsuit by NY AG Schneiderman, which seeks to discover if/when Exxon performed this analysis already....discussed ad nauseum in a different thread.
The NEWS:
Exxon had its shareholder meeting this past Wednesday, and the resolution was passed: to perform a peak demand scenario analysis, and to report it publicly in 2018, and update it annually thereafter.
https://www.bloomberg.com/gadfly/articles/2017-06-01/funds-fire-up-real-climate-change
The text of the resolution is here:
https://www.osc.state.ny.us/press/docs/exxon-mobil-corporation-shareholder-proposal.pdf
WaPo is reporting that the crowd with torches and pitchforks included three big investment firms, BlackRock, Vanguard and StateStreet.
https://www.washingtonpost.com/news...n-over-climate-change/?utm_term=.6656b5e190a4
Either those three firms, managing $12 trillion together have been taken over by a bunch of dirty hippies OR perhaps they are concerned that a coming, um, Carbon Bubble, might put a trillion or two dollars of their customers money at risk.
I'm voting hippies myself.
And then on Thursday some other chit happened.
Background:
As has been discussed in some other threads, the oil majors are in a bind. Many analyses of future markets suggest a peak and slow decline in future global oil demand, which is rather different than the forever growing demand they have been projecting for decades. As in their shiny 'World Energy Outlook' reports.
It seems plausible this will, in the long term, affect their profits, investment strategy, dividends and perhaps viability.
And the SEC rules require, that if they perceive such a threat to their business model, they need to share the results of such an analysis with shareholders.
Several oil majors like Total and Shell have made public statements to the effect that they expect global oil demand to peak in the next five or ten years, due to increases in usage efficiency and the rise of affordable electric vehicles, EVs. Much of the majors projected future growth was in gasoline autos in the developing world. Obviously, climate policies around the world will promote and speed this tech disruption of the oil economy.
And then there's Exxon.
Exxon mgmt has flatly denied that there is any risk of demand disruption in the forseeable future, for any reason (efficiency, EVs or climate concerns). Last year Exxon CEO Rex Tillerson asserted that 'There is no alternative to oil'. So oil demand is secure. Period.
In a CYA move, they put the decision to do a 'peak demand' analysis to the shareholders at their annual meeting, in Dallas. At last years meeting (and previously), the motion was voted down...no analysis.
Of course, it seems possible that **someone** in the company would have performed an analysis that many of Exxon's peers have performed, probably years ago. If the results were unfavorable (and deemed possible) then not sharing it with shareholders is a legal violation. This is the basis of a lawsuit by NY AG Schneiderman, which seeks to discover if/when Exxon performed this analysis already....discussed ad nauseum in a different thread.
The NEWS:
Exxon had its shareholder meeting this past Wednesday, and the resolution was passed: to perform a peak demand scenario analysis, and to report it publicly in 2018, and update it annually thereafter.
https://www.bloomberg.com/gadfly/articles/2017-06-01/funds-fire-up-real-climate-change
The text of the resolution is here:
https://www.osc.state.ny.us/press/docs/exxon-mobil-corporation-shareholder-proposal.pdf
WaPo is reporting that the crowd with torches and pitchforks included three big investment firms, BlackRock, Vanguard and StateStreet.
https://www.washingtonpost.com/news...n-over-climate-change/?utm_term=.6656b5e190a4
Either those three firms, managing $12 trillion together have been taken over by a bunch of dirty hippies OR perhaps they are concerned that a coming, um, Carbon Bubble, might put a trillion or two dollars of their customers money at risk.
I'm voting hippies myself.
And then on Thursday some other chit happened.
