Large oil companies have weak emissions data according to a new study by PFC Energy that rated the companies on detail, frequency and coherency of emissions disclosures.
PFC rated the companies on a scale of 1 to 5, and none of the companies rate a 5 out of 5. Shell was the worst with a 1.15 out of 5. The rest: BP: 3.05, Exxon: 2.76, ConocoPhillips: 2.64, Chevron: 2.4, and Total: 2.03.
With the U.S. stepping up it regulatory requirements for disclosure, this information will become valuable for investors that want to know what kind of liability is ahead for oil companies.
Because national oil companies control access to most of the world’s oil supply, it is tougher for oil companies to secure oil. As a result, the processes they use to get oil throw off increasing amounts of emissions, according to PFC. Combine these growing emissions to procure oil with coming changes in emission regulation and it adds up to an expensive headache.
“If the whole chain were taxed at a conservative average carbon tax of $30/tonne, the future tax liability would be very large —for several International Oil Companies, in excess of $20 billion,” estimates PFC. The research group also notes that oil companies spend comparatively little on R&D to mitigate their growing emission problems.
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