Oil Gas: Exxon Mobil and Default Scenarios

oil gas: That could be about to change, according to Global Times China. The default scenarios used by investors peering into the future are from the International Energy Agency, which represents developed-world energy consumers. One of the key stumbling blocks for investors trying to work out if a crude producer faces impending ruin is the lack of a reliable global warming base case to deploy when interacting with board members. The IEA has pointed out that its projections are not forecasts, but analyses of what might be required to limit global warming to different ceilings. But it allows the likes of Exxon Mobil to get away by stating in its 2018 Financial and Operating Review that 21 trillion of investment in oil and gas is needed between 2018 and 2040 even if that could fry the planet. Some of these are in line with the 2015 Paris Agreement s objective of limiting temperature rises to substantially below 2 C. Yet the IEA's best-known one, the so-called New Policies Scenario, assumes minimal change from pre-existing, inadequate climate policies to a future in which warming soars to a ruinous 2.7 C. It's arguably not the IEA's fault that investors have adopted the NPS as a base case. (news.financializer.com). As reported in the news.