A Research Study On Global Warming

5887 WordsJun 7, 201524 Pages
Abstract Oil majors are caught in a dilemma between being reactive or proactive in facing the rising urgency of climate change mitigation. Action on global warming mandates leaves oil companies no choice but to divest their assets in the carbon-intensive oil industry and shift their interest to low-carbon energy portfolios, their corporate strategies will have to either gamble on maximizing short-term profits in oil production while facing increasing climate change risks, or adapt their strategies in response to such risks and gain the advantage of a head start in low-carbon economy. This study examines an array of drivers in an attempt to model oil majors’ behaviour in addressing climate change, and what incentives that would trigger a shift in their interest towards a greener energy portfolio. In doing so, the study creates synthesis for each of these factors in case-specific situations for a number of the biggest oil majors. These factors include internal, regional and economic drivers that are examined in literature historically, as well as a contemporary perspective on surfacing challenges such as the declining Energy Return on Energy Invested ratio, especially for unconventional oil production, and what the implications will be for the oil industry. The Challenge (Intro.) The IPCC 5th report on climate change dictates we may have hit the no-return mark before action of climate change becomes too late, with a high degree of agreement, it is clear that we live in a
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