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Fossil fuels in trouble amidst price glut

fossil fuels in trouble

Creative Commons: Roy Luck, 2012

Amidst plummeting prices for oil and coal, companies betting on risky, out-dated fossil fuels are finding themselves losing the battle for survival against the clean energy future.

As oil prices continue to drag, Shell reported an 87 per cent decline in annual profits this week, leaving thousands of the company’s employees bearing the brunt. Statoil andBP have both also reported steep declines in earnings.

Oil is not the only industry in trouble. In the latest blow to the declining coal industry, UK based SSE has announced plans to close three units at one of its ageing coal plants, reporting economic challenges.

In Australia, unconfirmed reports show the country’s largest planned coal mine in the Galilee basin could also be facing yet more turmoil and energy company AGL has announced it is abandoning coal seam gas operations.

With renewables booming – and making countries both wealthier and healthier in the process – these latest trends show there is really no reason to cling to volatile fossil fuels, and the companies getting ahead of the curve and diversifying their portfolios are already seeing the benefits.

Meanwhile, those that continue to fight for fossil fuel market scraps will only face greater instability as the world transitions towards a 100 per cent renewable future.

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