Appendix A
(c) GHG Emissions Trend Analysis Integrated Oil and Gas companies that did not provide quantitative data: CDP1
CDP2
CDP3
Chevron Texaco ENI Exxon Mobil Gazprom Lukoil Petrobras Repsol Surgutneftegas Williams Cos
Gazprom Lukoil Marathon Oil SIBNEFT-Siberian Oil Yukos Oil
Formosa Petrochemicals Imperial Oil Lukoil PTT Surgutneftegas
Oil and Gas Exploration companies that did provide quantitative data: CDP1
CDP2
CDP3
Anadarko Petroleum CNOOC Unocal
Anadarko Petroleum Apache Corp Burlington Resources CNOOC Devon Energy Corp. Encana Corp. Oil & Natural Gas
Anadarko Petroleum Apache Corp Burlington Resources CNOOC Devon Energy Corp. Oil & Natural Gas Unocal Corp
(d) Additional Trend Analysis • Potential Carbon Cost Liabilities: Assuming a price of $50 per tonne of carbon, a 20% emissions constraint and a 7 year compliance period, the most exposed Oil & Gas company could face annual compliance costs in excess of 2% of net income. Conversely, given the
incorporating CO2 shadow pricing in internal financial analysis and project economic modeling. This is an evolution from CDP1 when most formal climate strategies existed primarily at the corporate level. • Continued Innovation in CO2 Capture and Storage Strategies: Most FT500
same assumptions, the least exposed
Oil & Gas firms are exploiting CO2
firm faces less than 0.5%.
capture and storage opportunities as a
• Strategic Recognition of a Coming Shift to Low-Carbon Fuels: Opinions differ on what the optimal global fuel mix should be but Oil & Gas companies see a possible “long term shift in the global energy mix” (Petro-Canada), recognize that they “may be vulnerable to policies that discriminate against fossil fuels” (BG Group) and state the possibility of a “potential decline of the fossil fuels market” in the longer term (ENI). • Carbon Risk Management Strategies
cost-effective means of emission reduction. BP recently opened what is believed to be the largest sequestration project in the world at Insalah in the Algerian desert. The company expects to inject around one million tonnes of CO2 every year at the site. Norsk Hydro is currently developing technology for CO2 separation for gas-fired power production and for the production of hydrogen as a CO2 free energy carrier. Other sector leaders include Statoil, whose expanding capture and storage
Migrate to the Project Level: Several
capabilities on the Norwegian
companies including Chevron, Repsol,
Continental Shelf are driven in part by
Suncor and Total report integrating
Norway’s carbon tax of $50 per ton.
GHG emissions analysis into the planning for major capital projects by
Innovest Strategic Value Advisors
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