Financial results from 127 global oil and natural gas companies showed increased use of debt to help fund operations – along with asset sales – in recent years amid flat oil prices. Low borrowing rates facilitated this phenomenon, though the long-term sustainability of this strategy is questionable. “Using debt to fuel growth is a typical strategy, particularly among smaller producers. The increased debt load is anticipated to be met with increased production, generating more revenue to service future debt payments.” In other words, oil and gas output – particularly in North America – better keep increasing at or near recently prolific rates, or some companies may face balance sheet challenges. [EIA]

The roughly 1 million barrel cargo of Iraqi-Kurdish crude oil floating offshore Galveston, Texas has been marked for seizure by a US court if it’s brought in for sale. “The order, issued late Monday, could prevent the KRG from delivering the oil in the U.S., presenting a major challenge to its efforts to market oil independently from Baghdad.” [Wall Street Journal]

Today the White House released a report analyzing the economic impacts of climate change and whether these impacts would be more severe by waiting to enact mitigation policies. Unsurprisingly, the study finds that waiting to address climate would likely lead to higher costs over the longer term. The report refers to climate change policy as a kind of “climate insurance policy. “The longer that action is postponed, the greater will be the concentration of CO2 in the atmosphere and the greater is the risk. Just as businesses and individuals guard against severe financial risks by purchasing various forms of insurance, policymakers can take actions now that reduce the chances of triggering the most severe climate events.” [The White House]