by Ben Bovarnick
As the drive for oil forces companies into increasingly risky environments, major oil companies are failing to disclose the risks associated with their endeavors, according to a group representing global investors.
A new report released by Ceres found that ten of the world’s largest publicly-owned oil and gas companies failed to fully report risks associated with deep water drilling and climate change to the SEC or their investors.
Of the ten companies, eight “provided minimal or no information about safety or environmental statistics,” or “investments in safety related R&D.” In fact, ExxonMobil received ratings of poor or no disclosure on 8 of 10 categories, only receiving a “Fair Disclosure” evaluation for corporate governance.
Such poor disclosure practices should concern investors and the public as oil companies race to tap wells thousands of miles beneath the sea in the Gulf of Mexico and in the ice-covered Arctic Ocean.
Despite the high risk of operating in the extreme and unpredictable environment, Royal Dutch Shell is preparing to drill exploratory wells off the coast of Alaska’s North Slope this summer. While drilling will occur in shallower water than the Gulf of Mexico, the harsh conditions — coupled with a stark ...