snow pea Posted February 13, 2014 Share Posted February 13, 2014 O&G are pretty far outside of my circle of competence so I generally leave such companies in the 'too hard' pile, but I am nonetheless curious to what degree those of you who have knowledge, interest, and/or investments in O&G pay attention to / quantify regulation risk, and in particular macro regulation risk due to (for example) climate change activism, such as the possibility of carbon taxes and/or broad carbon emission regulations? To the degree that I have read through O&G related threads here, I can't recall seeing much discussion of this. Maybe it is generally considered a non-factor as politically unlikely? Or perhaps I have just missed it - I would be happy with a link to a thread where it has been discussed if this is not a new topic. I am somewhat spurred to this curiousity by this (not particularly new) article, which in a long winded way describes a tool which has apparently been added to Bloomberg terminals and which apparently allows modelling not only of how various O&G companies' assets and profitability would be affected by changing commodity prices, but also seemingly of at least some effects of potential regulation, such as "loss of earnings because of "prompt decarbonization"; and loss of earnings because of "last-ditch decarbonization"". (I don't know exactly what is being referred to as 'prompt decarbonization' or 'last-ditch decarbonization' - the terms aren't defined in the article.) http://insideclimatenews.org/news/20131203/bloomberg-lp-launches-first-tool-measures-risk-unburnable-carbon-assets Link to comment Share on other sites More sharing options...
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