Should We Leave Fossil Fuels in the Ground?

Fossil fuels are the driving force of our modern economy and infrastructure, but a new study published in Nature journal has challenged their reign and urged that the organic geologic deposits be left in the ground. Why? Climatic scientists maintain that halting fossil fuel extraction is the only way to combat rising temperatures. It may be an environmentally idealistic suggestion but at the end of the day the world needs to ask itself how the drastic move would affect business.

Fracking on the brink of a boom

Hydraulic fracturing is on the cusp of a global explosion, with countries such as the USA leading the way. It’s generating a huge amount of profit for invested businesses yet at the same time scientists maintain that it’s they key culprit behind climate change.

Leave untouched regions un-fracked

Deep under Canada and the Artic lie trillions of dollars’ worth of extractable oil, gas and coal. While the deposits represent bucket loads of cash scientists stress that burning the resources would jeopardise the agreed global temperature goal of 2C. Figures revealing how much fossil fuel humans can safely use have already been uncovered, which has led to the scientists questioning why companies continue to invest billions of dollars into searching for new oil and gas reserves.

Opinions from the experts

Andrew Winston, CEO of Winston Eco-Strategies backs the research and asserts that simple math confirms that fossil fuels must be left in the ground. “What this study seems to do is to take the carbon math-data and actually overlay it over real places.” Yet while the need to cease fracking is obvious he predicts that fossil fuel companies will continue to ‘burn’ capital on extracting resources that they simply can’t use. Instead, Winston says companies should begin to look at renewable investment and begin planning for the transition.

Danielle Fugere, president and chief counsel at As You Sow, a non-profit foundation promoting corporate accountability is also on-board, stating that the report, “confirms the issues that the world is dealing with.” He argues that these are the sorts of questions that companies need to be asked in order to push for low-cost renewables and efficient energy.

Leslie Samuelrich, president of Green Century Capital Management maintains that as well as saving the planet avoiding investment in fossil fuel companies will also save shareholders a serious chunk of cash. Industry analysts may be predicting a short tem boom however in the long run Samuelrich says that fossil fuel companies are a risky investment and most definitely on the way out. She also states that any capital that is invested is channelled into the extraction of fossil fuels that can never be used. “We think that investors can potentially reduce financial risk by staying away from fossil fuel companies. The report amplifies the message that fossil-free investors have been hearing and responding to. It’s like one more nail in the coffin of developing fossil fuels that the earth can’t afford to burn and that investors shouldn’t risk supporting,” she explains.

So will the world put an end to fossil fuel extraction? It’s a controversial debate but at the end of the day scientists maintain that it will make or break the future generation. The UN-backed Intergovernmental Panel on Climate Change (IPCC) has stated that the unrestricted use of fossil fuels must be phased out in order to avoid catastrophic climate change, which is discussed further in: How Much Longer Can We Depend on Fossil Fuels?