Comments on: SEC goes after Exxon over Climate Change?

By: Greg Laden

Greg Laden — Wed, 21 Sep 2016 14:27:47 +0000

Yeah, I saw that! We’ll see how that works out…

By: Gingerbaker

Gingerbaker — Wed, 21 Sep 2016 13:39:51 +0000

“ExxonMobile has taken material steps, knowingly and intentionally, that will cause the end of civilization as we know it.

That, of course, is not illegal. ”

I wouldn’t be so sure about that!:

http://www.reuters.com/article/us-global-landrights-icc-idUSKCN11L2F9

By: Douglas Alder

Douglas Alder — Wed, 21 Sep 2016 01:41:28 +0000

In comments to one of your posts earlier this month I said I would like to see new regulations regarding fiduciary responsibilities with respect to climate change. Perhaps the SEC is going down that route now?

By: Greg Laden

Greg Laden — Tue, 20 Sep 2016 23:24:37 +0000

This does not, indeed, relate to ExxonMobil’s other and earlier problems, but it does represent, I have on good authority, a conflict with reality vis-a-vis the value of stranded or potentially stranded assets.

This is just coming to light now, it will be better understood in a few days, I suspect.

By: Eric Lund

Eric Lund — Tue, 20 Sep 2016 19:55:40 +0000

The article makes claims that the investigation is related to climate change issues, but presents no evidence that this is actually the case. What seems to be going on here is that XOM does not follow standard industry practice in writing down the value of oil and gas reserves as prices drop. XOM claims they don’t need to, because they value these assets conservatively in the first place and therefore have some room to accommodate a fall in prices. Whether these practices will make it harder for XOM to accurately value these assets in a more regulated future world is a legitimate question. But the investigation does not seem to have any direct relationship to XOM’s past activities regarding climate change research.