For any future stories or analyses on ExxonMobil’s latest climate report, ‘Positioning for a Lower-Carbon Future’ , please find our statement below.

Andrew Grant, senior analyst at Carbon Tracker said:

“ExxonMobil’s ‘Lower-Carbon Future’ outlook is a step forward from its ‘Managing Climate Risks’ 2014 report but still omits the vital details needed to be decision useful for investors. Exxon acknowledges that in a low carbon transition, low supply costs will be critical and also recognises for the first time that some of its future resources would not be needed in a 2 deg world .

“These points demonstrate the need for companies to conduct forward-looking scenario analysis to consider which of the company’s projects would remain attractive in a low carbon transition. The scenario which Exxon uses is more generous in terms of future oil and gas demand than some other scenarios, so investors will want to satisfy themselves it is a genuine stress test of the company’s business.”

“We would generally agree that demand risks don’t necessarily spell out financial doom for the larger oil and gas companies. The question is how they act from now on. The oil price environment over the last few years has forced a conservative view on project sanctioning; do they continue with this and crystallise value for shareholders when possible, or will temptation prove too much if and when oil prices rise in future?”

Find ExxonMobil’s press release here.