Nov 29, 2016

Shell expects no climate accord hit

Royal Dutch Shell expects to pump out all the fossil fuel reserves listed on its balance sheet

its chief executive says, dismissing concerns that production limits in the wake of the Paris climate accord could hit the energy giant's valuation.
In an interview with Dutch newspaper Het Financieele Dagblad, Ben van Beurden says the issue of "stranded" reserves - deposits in the ground that cannot be used because of carbon emissions limitations - would have no impact on balance sheets.
"The company is valued on producable reserves that we can produce in the next 12 or 13 years," he said. "We should certainly be able to produce those under any climate outcome. Even if global temperatures can only rise by two degrees (celsius)."

The Paris Climate Agreement, which came into force in November, commits almost 200 countries, including China, the United States and the European Union, to limiting temperature increases to 2C and weaning the world economy off fossil fuels. The Anglo-Dutch energy giant, the world's third largest by market capitalisation, has bet heavily on a lower-carbon future, with investments in wind and renewables capped by the $US50 billion ($A67 billion) acquisition of British Gas in February.


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