Climate change is happening and most people in the world believe it is true. When that happens companies have to do something to ensure their products will be continually used with very little interruptions. That is good for the company and the consumer will continue to spend money. With climate change the biggest companies which people come to see as a problem or those that produce carbon or oil companies. What is a oil company to do? They can do nothing, fight the issue, or try to be part of the solution because the world is not going to go off oil in the next calendar year. It will take much longer than that.
In an article by Terje Solsvik and Nerijus Adomaitis of Reuters, Sweden’s Lundin sold what it said is the world’s first oil cargo certified as carbon-neutral at the point of production to Italian refiner Saras.
The crude from the Norwegian Edvard Grieg oil field was certified as carbon-neutral from exploration, development and so called Scope 1 and 2 emissions, the major emissions caused by the oil’s final use. Lundin Oil said the North Sea Grieg field causes only 3.8 kilos of CO2 emissions a barrel, 5 times less than the global average.
Emissions from producing the 600,000 barrel cargo amount to 2,302 tonnes of CO2 an equivalent of which will be captured by a tree-planting project in Mexico. Lundin said in would invest $39 million in a project to plant 8 million trees in northern Spain and Ghana as part of the company’s wider $750 million to decarbonize its output.
The other option is buy carbon credits.
Linking to dividend paying stocks, some of the best dividend stocks in the world are oil companies and if all they go into carbon neutral, there should be millions of trees being planted around the world. Whether that is the best solution to the problem, it is a good thing to plant trees. Consumers will decide, for your investments you may have to determine whether their efforts are sincere to combat global warming or not?
There are more questions than answers, till the next time – to raising questions.