According to Reuters, oil conglomerates such as Exxon Mobil Corp. (NYSE: XOM) and Royal Dutch Shell may be in troubled waters as more than $2 trillion dollars could be wasted on projects and developments by 2025.
With a global movement on the attack of climate change, Exxon and Shell could lose a third of allocated funds for projects that will exceed carbon emission restrictions. The Carbon Tracker Thinktank report revealed that international governments are attempting to lower carbon emissions to limit climate change to 2 degrees Celsius.
The study compares and calculates carbon emissions from oil developments delegated by 69 corporations that were limited by the targets from the Paris agreement in 2015. It revealed that Exxon could potentially lose 50 percent of its funds for oil fields and Shell and Total are likely to waste 40 percent of their budgets as well.
President Trump recently made headlines around the world after parting ways from the Paris Climate Accord, but this is belittled since 10 states, including California and New York, have already signed the agreement and another 9 announced to follow its constraints.
Fossil fuel sellers are under pressure since almost 200 countries have globally recognized the dangers of climate change. Top energy companies have even advocated for the necessity of a tax for companies who disregard the agreement. Exxon, the worlds largest publically traded oil company, has already broken the agreement.
The study also discovered that the five of the most expensive oil projects, including the extension of Kazakhstan's giant Kashagan field, will be unnecessary if companies meet the climate change restrictions.