Why rising oil prices risk setting 'stranded asset trap' for fossil fuel developers

Michael Holder
clock • 7 min read
Oil and gas prices have more than doubled over the past year | Credit: iStock
Image:

Oil and gas prices have more than doubled over the past year | Credit: iStock

Oil prices may have surged in recent months, but investing in new fossil fuel projects risks 'catastrophic levels of value destruction' when prices fall, new Carbon Tracker analysis warns

Oil and gas firms should resist using the recent rise in prices as a green light to plough more money into new production projects, as it could risk well over $500bn being wasted on assets that quickly...

To continue reading this article...

Join BusinessGreen

  • Enjoy exclusive news, insights and analysis from Europe’s leading source of information on the green economy and business.
  • Make smart, responsible business decisions with an eye on the latest regulatory and tech developments
  • Stay in the know with our overnight briefing, expertly curated help you run a competitive and sustainable business
  • Tap into our extensive archive of exclusive articles, news, analysis and guides
  • Access our Intelligence Reports and exclusive data-rich studies on business-critical aspects of the green economy (BG Advanced members only)
  • Choose from 3 paid membership levels or start a 7-day no strings trial

Join nowTry 7 day trial

 

Already a BusinessGreen member?

Login

More on Energy

Credit: iStock

PPAs and the Corporate Renewables Revolution: BusinessGreen debuts latest whitepaper

New whitepaper exclusively available to Advanced BusinessGreen members

BusinessGreen staff
clock 25 November 2022 • 1 min read
Siemens-led consortium aims to crack the code for green ammonia and hydrogen

Siemens-led consortium aims to crack the code for green ammonia and hydrogen

Siemens Energy, Fortescue Future Industries (FFI), and GeoPura announces plan for £3.5m ammonia cracking prototype which could deliver hydrogen at industrial scale

clock 24 November 2022 • 4 min read
Credit: iStock

Energy bills: Why household finances and business certainty will still suffer under Jeremy Hunt's extended plan

More ambition, particularly in boosting energy efficiency, could help, explains UCL professor Jim Watson

Professor Jim Watson, UCL
clock 22 November 2022 • 4 min read