Industry-leading analysts Wood Mackenzie have predicted oil demand to peak in 2036. ClientEarth finance lawyer Jo Etherton said: “Peak oil is no longer a theory – analysts see it as dead certain. Meanwhile, oil executives seem to be basing their assumptions on unfounded optimism. This is a clear mismatch.
“Forecasting without regard to clear signals from analysts suggests that the outlooks oil companies are giving their investors are far too rosy. Assets need to be priced and business strategies prepared in line with the information from the experts – not solely those with a vested interest in preserving the status quo.
“Investors and regulators will be raising an eyebrow if more realistic outlooks are not reflected in scenario planning and strategic reporting. There are clear legal risks for those falling short.”