S&P has placed big oil on negative watch stating the increased environmental threats of methane gas, evolving government policies and an increase of renewable energy are all risks to the industry. BNN Bloomberg’s Tara Weber reports. See Full Stock Page » Big Oil suffered a fresh setback after one of the most influential rating companies warned it may cut the credit score of Exxon Mobil Corp., Royal Dutch Shell Plc and a plethora of other major energy companies due to “greater industry risk” associated with climate change. The move by S&P Global Ratings comes as the oil and gas industry is on the ropes, unloved by equity investors and facing pressure from multiple policy makers after U.S. President Joe Biden put climate change at the center of his agenda. “S&P Global Ratings believes the energy transition, price volatility, and weaker profitability are increasing risks for oil and gas producers,” it said in a statement on Tuesday. To factor this change, the rating agency said it had revised its industrywide risk assessment for the oil and gas sector to “moderately high” from intermediate. If oil producers’ rating is cut, their cost of capital would likely increase, as debt investors demand […]
CamTrader offers a preview only. View original article. www.bnnbloomberg.ca