Oil Industry Risks $1.1 Trillion of Investor Cash
From www.Bloomberg.com on May 8, 2014
By Alex Morales May 8, 2014 2:13 PM PT
Oil explorers like Exxon Mobil Corp. and OAO Rosneft risk wasting $1.1 trillion of investors’ cash through 2025 on expensive, uneconomic projects from the Arctic and deep seas to tar sands, according to a study.
That’s the sum the industry may spend on developments that need market prices of at least $95 a barrel to break even, the Carbon Tracker Initiative said. The money risks being wasted as the total amount of oil the world can afford to burn without warming the planet to unsafe levels is available from less costly deposits that are economical at $75 a barrel, according to its report.
Petroleo Brasileiro SA’s capital spending on projects needing