Oil Companies Including BP Plc Prepare For A War Against Coal Companies

Climate change awareness rises hurting coal companies, oil companies unexpected alliances to protect themselves and support the environment.

Global awareness about global warming and climate change is increasing and is being taken into consideration by countries worldwide. Unfortunately, this hurts most of non-renewable energy manufacturing companies, as the population tries to switch to renewable sources of energy to protect the environment as much as possible. Oil companies have formed unexpected alliances to protect the industry and fight with coal industries asking the government to start a carbon tax. Other environmentalists are asking the government to start new taxes on energy companies that cause pollution of all sorts.

BP Plc., Royal Dutch Shell Plc. and many other energy manufacturers are demanding a carbon tax so that coal companies suffer and pay for the gas emissions they release into the air. Oil companies are joining forces making unexpected alliances for this demand to be met, this is being done because natural gas demand is ultimately going rise, which would provide these companies huge sums of profit on their part.

The UN Climate Summit held in Paris was attended by major famous public figures such as Bill Gates, Mark Zuckerberg and many others; the summit has been going on since November 30 and is expected to end on December 11. The growing concern about the climate and awareness worldwide is leading oil and gas companies to team up and ironically support the climate by asking for carbon tax, which is actually going to benefit them.

There is evidence for this claim; Royal Dutch has increased natural gas production rather than crude oil for a while now, while BP PLC is also expected to develop natural gas on a larger scale. For now 44% of energy is developed through coal, EIA informed that coal companies release a huge amount of carbon dioxide into the air compared to any other fossil fuel. After the public was aware of this, the coal companies suffered, a huge decline in price was witnessed. Walter Energy and Patriot Coal have gone bankrupt.

BP has left the coal production service in 2014 and 2012, after the decline in the market was witnessed. Many individuals and authorities are now switching from coal to natural gas after the concerns rising. A huge decline is expected in coal production in the coming year, US will do so by 13 gigawatts, China has also been reported to switch to renewable sources of power.

Coal will is not dependable for energy and power in the future while the market moves to natural gas with the hope of reducing pollution as much as possible. Companies that are producing energy through wind and solar power are expected to generate huge profit in the coming years, since the world is trying to save the environment and prevent damage.

BP stock closed at $33.81, going red by -2.75% on December 3.