Exxon: Future climate rules won't curb fossil fuel investments

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

Exxon Mobil (XOM) dismisses any notion that it would retreat from oil sands and deepwater reservoirs amid potentially stringent carbon regulations in the future, saying fossil fuel production will continue to be key to meeting global energy demand for decades.

XOM's report on the risks that climate change policies could pose to the company's assets and future profitability - the first detailed response to these concerns by a major oil company - acknowledges the need to adopt policies to address climate change, but it concludes that governments are highly unlikely to adopt policies that cut emissions so sharply that oil and gas consumption would be severely restricted.

Some investors have argued that XOM's shareholder value could be put at risk if oil producers were unprepared for a future of constrained fossil fuel production under tougher climate rules.