Examining the oil market’s function, considering both its short-term dynamic movement and the potential for long-term transitions.
With U.S. climate leadership lagging, the G-7 is finding ways to move forward in spite of U.S. reluctance while China looms as the new international climate powerhouse.
By creating policy frameworks for innovative mobility services, governments have an opportunity to address environmental and societal goals while promoting investment and technological leadership.
The Saudi Aramco IPO offers a unique opportunity for climate-based transparency. Yet, despite having some of the cleanest oils, transparency is unlikely without pressure from investors and exchanges.
More power to the states to price carbon can support emissions reduction from human activities that accelerate climate change.
Taxing climate pollution instead of productivity will be a societal breakthrough.
Innovative and continuous support will be needed to manage the effects of a sustained decline in oil prices, especially in oil-producing and developing countries.
A smart carbon tax differentiates among the different chemical entities called “oil,” accounts for GHG emissions along the entire oil supply chain, and includes byproducts that do not fuel transport.
Because of the growing chemical and geological diversity of the new oils, the lack of alternative liquid fuels for transportation, and the size and global scope of oil production and trade, a tax is most needed in the oil sector.
For the first time, it is possible to estimate the value and profile of GHG emissions from oils throughout their supply chain using an Oil-Climate Index. This allows for the replacement of blunt tax designs with a smart tax that captures oil’s total emissions with minimal economic cost and maximum efficiency.
Although Saudi Arabia has appointed a new oil minister, it will most likely continue to maintain its current petroleum production policy.