Union of Concerned Scientists – “When we think about fossil fuel companies in connection with climate change, we’re likely to focus on the role of their products in generating carbon emissions. But these companies are also, like everyone else, subject to the impacts of climate change. Oil refineries, in particular, are highly vulnerable to climate impacts such as sea level rise and increased storm intensity. And many of the companies that operate refineries are not disclosing these risks adequately to shareholders and local communities. Our 2015 report Stormy Seas, Rising Risks focuses on facilities run by the top five U.S. refining companies, assessing both the extent of their climate risk and the companies’ failure to address that risk and publicly disclose it to their investors. Why focus on refineries? Refineries are critical components of the U.S. energy system, and they are especially vulnerable to climate change impacts for several reasons:

• They are frequently built in low-lying areas, often near the coastline. 120 U.S. oil and gas facilities are situated within 10 feet of the local high tide line.
• They have long operating lives, and companies typically update or expand refineries in existing locations rather than building new ones.
• They do not have high profit margins, so any disruption in operations may have a material impact on cash flows for the company and ripple effects across the economy when the public pays at the pump.
• There is already a track record of disruptions to refinery operations due to climate-related events: recent storms such as Katrina, Rita and Sandy have caused significant refinery outages. Such events are likely to happen more often as climate impacts worsen.
• Communities adjacent to refineries are also vulnerable to climate impacts and have been disproportionately affected by spills, blasts, and other industrial accidents at these facilities.

To reduce these vulnerabilities, companies will need to address both mitigation and adaptation to climate risks. On the mitigation side, they need to reduce their own emissions and stop opposing emissions-reduction policy measures. On the adaptation side, companies must actively consider, report, and act to prevent or minimize climate-related risks to their facilities.”