“Driven by technological, societal and political change, renewable energy technologies are progressively replacing fossil fuels.
Under an expectation that governments will fulfill their net-zero emissions pledges, these changes will accelerate, with the consequence that current oil and gas assets may be overvalued by more than $1 trillion, a figure that exceeds the subprime housing mispricing that triggered the 2007-2008 financial crisis.
While reduced future demand for oil and gas has previously been quantified under a range of scenarios, and the most vulnerable assets can be identified as those likely to be uncompetitive due to high extraction costs, the ultimate ownership of this financial risk is unknown.”
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University of Exter. Phys Org 26 May 2022.