Full Title: Oil and Gas Mismatches: Finance, Investment and Climate Policy
Author(s): John Mitchell, Valérie Marcel and Beth Mitchell
Publisher(s): Chatham House: The Royal Institute for International Affairs
Publication Date: July 1, 2015
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Description (excerpt):
This research paper analyses three developments that are combining to transform the outlook for investment in the oil and gas sector: price volatility, the changing financial environment and the impending strengthening of policy to mitigate climate change. It explores the connections and mismatches between the three developments and assesses their implications, especially those affecting the strategies of the 100+ diverse private-sector oil and gas companies, most of which are listed on stock exchanges and include the leading international oil companies (IOCs) or ‘supermajors’ responsible for about 10 per cent of global oil supply. These ‘mismatches’ also affect the expectations of those who invest in such companies through either loans or equity. In addition, there are implications for state-owned national oil companies (NOCs) and state-controlled listed companies – which together account for about 60 per cent of global oil production – as well as for the governments and people who depend on their revenues.