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Environment
Gregor Semieniuk, Assistant Research Professor of Economics, UMass Amherst

Who really owns the oil industry’s future stranded assets? If you own investment funds or expect a pension, it might be you

More countries are discouraging fossil fuel use, but the industry is still pumping. Leonard Ortiz/MediaNews Group/Orange County Register via Getty Images

When an oil company invests in an expensive new drilling project today, it’s taking a gamble. Even if the new well is a success, future government policies designed to slow climate change could make the project unprofitable or force it to shut down years earlier than planned.

When that happens, the well and the oil become what’s known as stranded assets. That might sound like the oil company’s problem, but the company isn’t the only one taking that risk.

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