Shell insists its reserves won't be stranded by climate policymaking.

Reuters: “Royal Dutch Shell “has dismissed the possibility that its proven oil or gas reserves will become unusable as a result of climate change regulation, saying fossil fuels will play a key role in global energy to 2050 and beyond.”“Environmental campaigners, activist investor groups and some lawmakers have warned that financial markets could be overvaluing companies with large fossil fuel assets, such as Shell, thereby creating a “carbon bubble” and putting at risk trillions of dollars in pension funds.
Shell, however, played down such claims last week in a letter it said was in response to shareholder inquiries on the issue of “stranded” assets, referring to large investments in fossil fuel reserves that could become unprofitable if governments pass laws to curb runaway growth in greenhouse gas emissions in an attempt to reduce the impact of climate change.
“While the ‘stranded asset’ notion may appear to be a strong and thought-through case, it does have some fundamental flaws,” JJ Traynor, Shell’s executive vice president of investor relations, said in the letter posted on the company’s website, dated May 16.
Traynor maintained that the world will need oil and gas for many decades to come, supporting both demand and prices.
“As such, we do not believe that any of our proven reserves will become ‘stranded’,” he wrote.
“There is a risk that focusing on ‘stranded assets’ or the concept of the ‘carbon bubble’ distracts attention away from the reality of a growing population, increasing prosperity and growing energy demand.”