Question: Research and explain how stranded asset risk is expected to impact the share price of BHP and Woodside in the next 5 years, 10 years,
Research and explain how stranded asset risk is expected to impact the share price of BHP and Woodside in the next 5 years, 10 years, and 20 years. (70%)
What the question requires you to do is assess and discuss the extent to which each company's assets are subject to the risk of being a stranded asset because:
(a) changes in technology (which may affect demand for their products) will rise more in 20 years than 5,
(b) adverse regulation
(c) market conditions,
(d) negative reputational effects. Feel free to add other factors if you find them relevant.
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Stranded asset risk refers to the risk of an asset becoming obsolete or uneconomical before the end of its useful life resulting in its loss of value ... View full answer
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