Debt-Driven Dividends & Asset Fire Sales

This executive summary from the Center for International Environmental Law argues that the oil, gas, and petrochemical industries are in a state of systemic decline, characterized by financial instability, asset fire sales, and unsustainable debt used to maintain shareholder dividends.

• Major oil and gas companies have used steady dividend payments to hide financial frailty and instability. In response to a decade of falling profits and the COVID-19 pandemic, some companies like Shell have reduced dividends, while others, including BP and ExxonMobil, have increased debt to keep payments steady and maintain an image of stability.
• Oil and gas companies are selling assets at heavily discounted prices and writing them down due to a need for cash and skepticism regarding the future value of fossil fuels.
• The petrochemical sector is not a viable solution for the economic troubles of oil and gas companies. The industry's fundamentals are threatened by a combination of decreased capital spending, increased regulation of plastics, and lower plastic resin prices.

APA

Center for International Environmental Law (2020). Debt-Driven Dividends & Asset Fire Sales. https://www.ciel.org/reports/debt-driven-dividends-asset-fire-sales/

Chicago

Center for International Environmental Law. Debt-Driven Dividends & Asset Fire Sales. 2020. https://www.ciel.org/reports/debt-driven-dividends-asset-fire-sales/.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=Debt-Driven Dividends & Asset Fire Sales |date=9 July 2020 |url=https://www.ciel.org/reports/debt-driven-dividends-asset-fire-sales/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2020debtdriven, author = {{Center for International Environmental Law}}, title = {{Debt-Driven Dividends \& Asset Fire Sales}}, institution = {Center for International Environmental Law}, year = {2020}, month = jul, url = {https://www.ciel.org/reports/debt-driven-dividends-asset-fire-sales/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }