A recent report from Ceres details the risks to investors of the unproven extraction technologies of oil shale and coal-to-liquid fuels, according to the SocialFunds.com press release. The report, entitled Investor Risks from Development of Oil Shale and Coal-to-Liquids, details a number of risks with both of these technologies that are not new, but are considered “still in the early stages of development,” according to the report. Read more about the risks and what investors can do.
Among the risks reported are:
- water constraints, especially for oil shale development in water-stressed western states.
- current and potential regulatory efforts to mitigate the effects of climate change are risks to both technologies which are carbon-intensive.
- the price of oil, as the development of both technologies is contingent upon high oil prices.
- public opposition to unproven technologies.
The report recommends the following investor actions:
- engage with companies to further understand the risks that companies are assuming and how they are mitigating those risks.
- evaluate potential risks from state and municipal bonds in their fixed income portfolios.
- advocate for such policies as a national price on carbon and a low-carbon fuel standard.
For more information on Investor risks from unproven fuel extraction technologies read the full report here: Investor Risks from Development of Oil Shale and Coal-to-Liquids.
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