Analysis of the Global Energy Industry, Climate Change and Financial Matters: The Need for Effective Corporate Governance

Abstract

Energy companies provide critical economic resources for advanced societies. Yet, critics complain about climate change and excess profits. A plethora of research offers ample evidence, from scientific and policy experts, that climate change is not a significant problem, whether human-caused or otherwise. For example, Richard Lindzen, the Alfred P. Sloan Professor of Meteorology at MIT from 1983 to 2013, called “global warming” proponents discredited alarmists. Financial analysis shows energy companies are less profitable than those in other industries. Findings of this study are meaningful to academic researchers and corporate leaders, particularly if concerned with corporate governance of energy companies. Energy company managers would do well to inform the public, government leaders, and policy makers about the unfair charges of environmental harm and excess profitability, and assert the positive contributions of energy companies to the world economy.

Keywords: Energy industry, economic performance, oil and gas firms, environment, climate change

JEL Classification: G3, G38, M41, Q4, Q5