What is more – a significant portion of these energy assets can go unused and lose their value completely if environmental legislation is tightened even further, writes the specialized OilPrice website.
Financial Times estimates $ 900 billion worth of deposits – an amount equal to one-third of the value of energy companies owning them – could completely lose value when governments take stricter measures.
The effect of writing off frozen assets on a similar scale would put serious pressure on the business world. Most affected would be national oil companies, which control oil and oil reserves, amounting to about $ 3 trillion and representing 90% of all Earth’s reserves.
Given that in the last five years alone, all publicly traded companies in the sector have lost $ 400 billion in capitalization, such changes over the next 5 years will be catastrophic for the sector.
As far as national energy companies are concerned, the effect on them will also be felt in the revenues of the countries. 19 of these companies have assets in excess of $ 50 billion. Also, at least 25 of them contribute 20% or more of government revenue. First in this regard is the Nigerian National Petroleum Corporation. It provides about half of them.