Citigroup Inc. has become the latest major bank to pledge that it will not invest in oil and gas projects in the Arctic.
The company revealed the policy in its environmental and social policy framework for 2020, The Anchorage Daily News reported Monday.
“Citi has not previously provided and will not provide project-related financing for oil and gas exploration and production in the Arctic Circle,” the bank said.
BlackRock Inc., the world’s largest asset manager, urged companies in January to emphasize steps they are taking to combat global warming.
News comes as oil industry damaged
Citigroup’s announcement came as the oil industry is being damaged by rapidly falling oil prices and as Alaska companies reduce spending to handle the revenue decline.
Some oil industry professionals in Alaska expressed concern that reduced financial support for Arctic drilling could threaten future projects, particularly for small oil companies with limited assets and options for generating cash.
Oil prices fell again Tuesday. The cost for a barrel of U.S. oil to be delivered in June plunged 43 per cent to $11.57.
The price drop is related to the decrease in people flying and driving during shutdowns and the shuttering of factories amid widespread stay-at-home orders to slow the spread of the novel coronavirus. Global oil demand is set to drop to levels last seen in the mid-1990s.
For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks.
For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia and death. The vast majority of people recover.