Without Legislation, Oil Companies Struggle to Price Carbon Risks

Oil executives meeting at an industry conference in Houston this week said they already factor carbon prices into long-term decision making. But uncertainty over the future of climate change legislation in the US, makes accurately pricing carbon risks difficult.

Companies like Chevron (NYSE: CVX) and ConocoPhillips (NYSE: COP) declined to give the figures they use. But they seem to accept the eventuality of carbon regulation, and from their point of view a single set of federal rules is preferable to a patch work of state and EPA regulations. 

One analyst at the CERAWeek conference said he expects a "grand compromise" on carbon legislation after the 2010 midterm elections. 

Read Reuters coverage at the link below.