Paris conference: not all bad news for oil companies
According to most observers the climate summit in Paris may be considered more or less as a success. We already knew in advance that a perfect treaty was unreachable and indeed not everybody agrees with the deals made at the summit. The requirements of the environmental groups above all were too high, so they are not completely satisfied with the outcome of the climate agreement. But that 195 countries and the European Union as a whole claim to have reached a treaty which sets out that the global warming of planet earth should be limited to less than 2 degrees Celsius with a target value of 1.5 degrees was long considered unattainable.
In addition, individual countries have indicated to what extent they will periodically go further with concrete actions to achieve this objective. In the developing countries and the emerging economies in particular, it will be a task to achieve the desired economic growth without using fossil fuels. And the reduction of these fuels is one of the core points of the agreement. Whether the help offered by the US and the EU offers sufficient support remains the question. The success of the climate summit is partly due to an ever more widely shared sense that global warming is a major threat. Something scientists have been convinced of for a long time. It is important to note is that the business world is increasingly aware of the risks attached to higher temperatures on mother earth. The problem of the global warming isn’t being underestimated.
The oil industry seems to be one of the biggest losers of the Paris Climate Conference of. The sector will face a decrease in the demand for its traditional products in the coming years. On the other hand the companies active in sectors such as renewable energy may look forward to a great future. Patrick Pouyanne, chief executive officer of French oil giant Total, admitted that in the future it will be a lot more difficult for his company to maintain revenue and profit margins. But Pouyanne also confirmed that new opportunities are waiting on the energy market. In the end Total remains optimistic, it’s only a question of meeting these new challenges. | 21/12/2015 | Jos Sterk