Is Big Oil as immune to "stranded asset" risks as it claims? Such risks are normally associated with how the future development of climate policy could restrict demand for oil and impose additional carbon-related costs, making it uneconomic to produce higher-cost, higher-carbon reserves. But a "lower-for-longer" price scenario, in which demand growth is largely met by low-cost production from Opec and US shale plays, could also strand some reserves even without a further tightening of climate policy. And if these two scenarios play out in tandem, stranded asset risks could grow exponentially, as some producers now seem to be acknowledging.
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