This week energy company AGL released a research paper entitled Solving for ‘x’ – the New South Wales Gas Supply Cliff. The paper contains plenty of economic terms and algebra, but these merely serve to provide camouflage for another reiteration of the gas industry’s claims – that NSW is running low on gas and the only way around this is the development of coal seam gas (CSG) projects, such as AGL’s project in Gloucester.
Investments in coal, oil, and gas increase financial risk without increasing returns, according to the new report Climate proofing your investments: Moving funds out of fossil fuels published by The Australia Institute.
To meet the internationally-agreed two degree global warming limit, fossil fuel businesses must leave in the ground two-thirds of the reserves currently on their books. Failure to incorporate this risk is causing inaccurate share valuations.