Oil major Shell has dismissed concerns that production limits in the wake of the Paris climate accord could hit the energy giant’s valuation.
Chief executive Ben Van Beurden said in an interview with a Dutch newspaper that the issue of “stranded reserves” would have no impact on its balance sheets.
It concerns deposits in the ground which cannot be used because of carbon emissions.
He said:”The company is valued on producable reserves that we can produce in the next 12 or 13 years.
“We should certainly be able to produce those under any climate outcome. Even in global temperatures can only rise by two degrees.”
His comments come after the Paris Climate Agreement came into force earlier this month.
It commits almost 200 countries, including China, the US and the European Union (EU) to limiting temperature increases to two degrees.
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