US oil and gas producers were already facing a tough investment climate by the time this spring's price crash and demand plunge decimated capital spending plans. Layered on top of this near-term crisis is a much bigger, longer-term threat: climate change.
A recent Commodity Futures Trading Commission report argues climate change could pose a major risk to the stability of the US financial system. It backs an economy-wide carbon price and recommends that banks pilot the use of stress tests -- both of which could have big impacts on the US energy sector.
We spoke with Kyle Danish, a partner at Van Ness Feldman and a nonresident senior associate at the Center for Strategic and International Studies about the report and its potential impacts for the US oil, natural gas and power sectors.
Stick around after the interview for the Market Minute, a look at near-term oil market drivers with Platts senior editor Jordan Blum.