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

With views across to the Doomben Racecourse buyers are tipped to take a pun on this home

first_img15 Raceview Ave, Hendra.WITH views across the Doomben Racecourse, buyers are tipped to take a punt on this renovated Queenslander.The four-bedroom home at 15 Raceview Ave, Hendra is on a 856sq m level block on two lots has been renovated to include contemporary luxuries alongside its traditional elements such as VJ walls, breezeways, timber floors, high ceilings and french doors.A classic facade with window awnings and multiple carports and open parking spaces is surrounded by established lawns. Timber stairs lead up to the first-floor entry foyer, which doubles as an office.15 Raceview Ave, Hendra.Inside, a central living room is airconditioned and has a built-in shelf. It sits between two bedrooms with built-in wardrobes to one side and another bedroom with carpet and a wall of windows to the other.A new kitchen at the rear of the level features ample benchtops and cabinetry, quality appliances and a breakfast bar. It borders a dining room and a bathroom with a combined shower and bath and a timber-finished vanity.More from newsFor under $10m you can buy a luxurious home with a two-lane bowling alley5 Apr 2017Military and railway history come together on bush block24 Apr 2019Double screened timber doors open from the dining room to a covered deck with views over Doomben racecourse and out to the Sir Leo Hielscher Bridges.Stairs from the deck descend to a grassy backyard with a water tank, established gardens and a large storage shed.Back inside, the ground floor of the house is centred on a rumpus room and includes a bedroom, laundry and bathroom with a contemporary vanity.15 Raceview Ave, Hendra.Outside, a covered patio overlooks the back yard, while there are also two carports.Other features of the residence include fresh paint throughout and about a 20.8m frontage.Agent Marion Sheerman said the property offered development potential in a prime position.“Hendra is a sought-after suburb for families, young professionals and those looking for a village lifestyle close to the city, with a new shopping precinct consisting of a Woolworths supermarket and speciality stores soon to enhance the suburb even further,” Ms Sheerman said.“As the property is already on two lots, there is development potential to split the block and build a fabulous additional home, subject to Brisbane City Council approval.”last_img read more

FIFA 2018 Russia teams drawn

first_img(REUTERS) – The favourites to win next year’s World Cup in Russia were given navigable paths to the last 16 with the coaches of Germany, Brazil, Argentina and Spain having reasons to feel reasonably optimistic after yesterday’s draw.Soccer Football 2018 FIFA World Cup Draw, State Kremlin Palace, Moscow, Russia, December 1, 2017:The nations’ coaches pose for a photo after the drawEven hosts Russia, the lowest-ranked of the 32 nations taking part, breathed a sigh of relief after learning they will open the 21st edition of the tournament against Saudi Arabia before tackling Egypt and Uruguay in Group A.Holders Germany will open their bid for a fifth title against dark horses Mexico, with Sweden, conquerors of Italy in last month’s playoffs, and South Korea also in Group F.Ever-present five-time champions Brazil have Switzerland, Costa Rica and Serbia for company in Group E while Argentina face an intriguing opener against debutants Iceland in Group D.Lionel Messi’s Argentina, beaten by Germany in the last World Cup final and still awaiting their first title since 1986, will face Croatia and Nigeria as well as Iceland.While there was no obvious ‘Group of Death’, France were handed some tricky fixtures with 10th-ranked Peru, back after a 36-year absence, Denmark and Australia in Group C.The standout group match will be European champions Portugal against 2010 world champions Spain, although with Morocco and Iran also in Group B they both should progress.England, who have made next to no impression at the last two World Cups, will face fifth-ranked Belgium in Group G after they have played Tunisia and first-time qualifiers Panama.Diego Maradona, whose infamous ‘Hand of God’ goal for Argentina helped eliminate England in 1986, the last time the South American side won the trophy, drew England’s ball out of the bowl in a draw ceremony featuring several former greats.last_img read more