Oil Capital Investment at Risk?

Carbon Tracker Carbon Tracker Initiative new report launch - 8th May 2014 INFOGRAPHIC CARBON COST CURVES: EVALUATING RISK TO OIL PROJECTS Carbon Tracker research path 2013 2014 2011 Stranded Assets Carbon Supply Cost Curve Unburnable Carbon Investors now need more market We alerted the financial world that Based on carbon budget allowed to keep below 2° C of global warming, there is more fossil fuel listed on the insight in order to understand how to manage the carbon asset risk. The first report of the new research series is focused on oil. $674bn invested annually in "unburnable" fossil fuel assets can world's capital markets than can be potentially become stranded. burned. HOW MUCH CAPITAL INVESTMENT IS AT RISK? OIL PRICE DIVIDENDS CAPEX Which are the high risk high cost oil projects? To spend or not to spènd on new projects? Which companies are most affected? HIGH COST HIGH RISK What can shareholders.do to prevent risk? 1 What capital expénditure do oil projects reqúire? 1 Are these projects financially viable? And hence what break 2 even oil price in order to stimulate productión? Do some of these 2 investments risk becoming non-economic? 3 Is capital currentlyjdeployed as a bet on future high oil prices? 3 And jwhat about the risks to climate change and civilisation? SOMETHING HAS TO GIVE. Companies are to create value for their shareholders by focusing on lower cost and risk of projects. It allows for better returns. Carbon Tracker Initiative. All rights reserved, 2014.