Fossil Fuel Companies Are Grappling with Climate Change

first_imgFossil Fuel Companies Are Grappling with Climate Change FacebookTwitterLinkedInEmailPrint分享Time:A peculiar theme park in the Hague celebrates the history of the Netherlands through a series of miniature models. The Madurodam features little canals, old-fashioned windmills, tiny tulips and, amid it all, an homage to Royal Dutch Shell, the oil giant that is the biggest company in the country and, by revenue, the second largest publicly traded oil-and-gas company in the world. There’s a Shell drilling platform, a Shell gas station and a Shell natural-gas field, complete with a drilling rig. The display is at once odd–energy infrastructure in a children’s theme park–and entirely fitting: Shell has been, for decades, one of the most powerful players both in Dutch politics and on the global economic stage.But that could soon change. As concerns grow over the existential challenges posed by climate change, Shell must grapple with its own existential crisis: How should a company that generates most of its profits by serving the world’s enormous appetite for oil navigate a long-term future in which shifting political and economic tides threaten to make fossil fuels obsolete?Shell CEO Ben van Beurden has a bird’s-eye view of the situation from his corner office at the company’s global headquarters in the Hague. “We have to figure out what are the right bets to take in a world that is completely changing because of society’s concerns around climate change,” he says.Projections from energy companies show demand for oil could peak and fall in the coming decades; some outside analyses suggest demand for oil could plateau as soon as 2025. Markets are already jittery about the industry: energy was the worst-performing sector on the S&P 500 index in 2019. In 1980, the energy industry represented 28% of the index’s value, according to the Institute for Energy Economics and Financial Analysis (IEEFA). Last year, it represented less than 5%. The shift away from oil looms so large that Moody’s warned in 2018 that the energy transition represents “significant business and credit risk” for oil companies. The heads of the Banks of England and France said in an op-ed that any company that does not change strategically to the new energy reality “will fail to exist.” On Jan. 14, Larry Fink, founder and CEO of investment giant BlackRock, wrote in an open letter that “climate change has become a defining factor in companies’ long-term prospects.”As oil flirts with the prospect of decline, energy executives are at odds over what to do. Some firms, like ExxonMobil, are positioning themselves to squeeze the last lucrative years from the oil economy while arguing to shareholders that they will be able to sell all their oil. Shell and a handful of others are beginning to adapt.Under van Beurden’s leadership, Shell is charting a path that will allow it to continue to profit from oil and gas while simultaneously expanding its plastics business and diversifying into electrical power. By the 2030s, the 112-year-old fossil-fuel giant wants to become the world’s largest power company. As part of this strategy, Shell has worked to present itself as environmentally friendly. Last year, it committed to reduce its emissions by as much as 3% by 2021, and by around 50% by 2050, tying its executives’ compensation to the cuts.Analysts say it’s too early to tell whether Shell’s strategy to reduce reliance on oil will pay off for shareholders in the long run. Last year, Shell, while continuing to pay large dividends, bought back stock, helping maintain its share price. The maneuver kept the company’s stock valuation roughly level, but it’s hardly a workable long-term strategy. Across the sector, companies “have to figure out who they are in this changing market,” says Tom Sanzillo, director of finance at the IEEFA. “They are not the profit center that they used to be, and they probably never will be.”The viability of sticking with oil, even as major world economies promise to move away, is uncertain. Both ExxonMobil and Chevron are staying the course, hoping to outlast their competitors. But Shell and others are moving to adapt. BP, for instance, has also invested in natural gas and power, while ConocoPhillips has prioritized “short-cycle project times” to help it stay economically competitive. Occidental has dropped money into a method of drilling that allows it to store CO2 in the ground, a bet that it can offset some of the regulatory costs of CO2 emissions within its own operations. And in December, the Spanish oil giant Repsol committed to being carbon-neutral by 2050 and wrote down many of its oil assets on the grounds that their value will diminish as oil fades.[Justin Worland]More: The Reason Fossil Fuel Companies Are Finally Reckoning With Climate Changelast_img read more

Final Testimony Heard in Hempstead Clerk Misconduct Case

first_imgSign up for our COVID-19 newsletter to stay up-to-date on the latest coronavirus news throughout New York Hempstead Town Clerk Mark BonillaAn ex-employee of Hempstead Town Clerk Mark Bonilla continued to testify Tuesday regarding a request from Bonilla to hand over compromising photos of the employee’s ex-girlfriend to discredit her sexual harassment complaint.Alex Desidoro, the former Bonilla staffer, told the court on the seventh day of the clerk’s misconduct trial that Bonilla “requested photos more than once” with intent to “have something” on Desidoro’s ex-girlfriend and Bonilla’s accuser, Ariel Davis.Assistant District Attorney Jed Painter asked Desidoro if he ever offered to Bonilla give photographs of Davis, also an ex-employee in the clerk’s office. Desidoro declined that he did, testifying he “wouldn’t give them up in the first place.”Elissa Smith, another ex-employee of Bonilla’s who was transferred out of Bonilla’s office upon the sexual harassment claim filed by Davis, took the stand after Desidoro.She testified that she “was very uncomfortable in the office” and told Desidoro that he “needs to get out of the office” in a conversation regarding Bonilla’s alleged request for photos of Davis last summer.Smith also testified that Bonilla moved Davis out of his immediate office and into the department where she had previously worked as “punishment for coming in late.” She said that Davis’ transfer was a “downgrade” and that “every employee wanted to be in the executive office.”Charles Ribando, chief investigator for the Nassau district attorney’s office, and Investigator William Walsh also testified Tuesday.Ribando said that he sent Walsh and another investigator to arrest Bonilla outside of his home after interviewing Town of Hempstead employees and viewing video evidence of Bonilla touching Davis’ arm repeatedly.Walsh testified that Bonilla told him that he is a “touchy individual,” but that he never inappropriately touched Davis.Bonilla’s defense attorney, Adrian DiLuzio, referred to the case as a “legal conundrum” and said that it is “abundantly clear that nobody was investigating Davis to see if her complaint was credible.”Painter said that the evidence has “exceeded the level of proof” necessary, adding that “no one witness has to produce an entire case.”Judge Sharon Gianelli will hear closing arguments Wednesday at First District Court in Hempstead before ruling on the case. Bonilla faces up to a year in jail, if convicted.last_img read more