Climate Impacts Pile Up on Oil Infrastructure

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Climate change is already impacting energy logistics and infrastructure, roiling trade flows and adding yet another layer of uncertainty to an already volatile oil market. While the industry is no stranger to severe weather like hurricanes, the scale and number of these storms is increasing, as is the severity, geographic distribution and length of season. Meanwhile, acute events such as drought and wildfires are becoming more structural, while areas important to oil supply and logistics are seeing sudden and unprecedented weather shifts for which they are not prepared. According to the National Oceanic and Atmospheric Association, the US has experienced 23 distinct severe weather events costing at least $1 billion each so far this year, a record. This trend is likely to intensify as climate change progresses, which means more potential disruption to oil supply, processing, transit and even demand due to weather.

Oil Trade, Offshore Oil and Gas, Oil Supply, Oil Pipelines, Refining, LNG Trade
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