Oil Companies Will Sabotage Global Carbon Budgets
According to a reliable report by an energy analyst, says the Guardian, oil companies will increase production even as global demand slows. Huh?
Look at the situation this way. Oil companies own the rights to a resource whose value will be threatened by a mandate to lower carbon emissions and by competition from renewable resources. The longer they wait to liquidate these resources, the more they will lose in market price, so produce now. These corporate citizens (Citizens United ruling by SCOTUS) maximize profit. This is capitalism in action.
According to the IMF, a massive increase in the carbon tax to $75/ton (now shadow priced at $2) will be needed. Nobody believes that this will happen.
If oil companies flood the market, their action lowers the price, inhibits fuel shifting, and destroys the carbon budget allocation. This also threatens their “social license to operate,” so they must use their enormous political clout to prevent policies such as a carbon tax.
I have long publicly stated that such behavior can be expected by oil companies and sovereign wealth funds and that efforts to forestall such climate-destructive actions will never happen.
This behavior is among those that I believe create an inexorable conflict between capitalism and climate warming, which, given time lags and subtle feedback, will contribute to a climate catastrophe by the middle of the 21st century.
This stub reflects my concern that a handful of oil interests can undermine the well-being of all of humanity and contribute to the ecocide unfolding around us. In my opinion, this destruction will not be stopped.
I intend to elaborate further, soon.