More Climate Change Hysteria

A little-noticed news event this week with potentially major long-term implications for the U.S. oil and gas industry was President Biden's executive order directing federal agencies to address the risks climate change poses to the U.S. financial system and federal government.

Biden's order directs federal agencies to incorporate the economic risks from climate change into decision-making, and it does not specifically address fossil fuel investments, but the concern among energy producers is that financial regulators ultimately will use their power to steer banks and investors away from the industry.

Many big banks, setting targets to align their financing with the Paris climate agreement, already have ended funding for coal projects, and the oil industry fears it could be next.

This week, the G7 nations agreed to stop international financing of coal projects by the end of this year and phase out such support for all fossil fuels.

Also this week, environmental activists who have long called for ending such funding got a boost when the International Energy Agency said "investment in new fossil fuel supply projects must cease immediately."