The Globe and Mail reports in its Friday, Sept. 22, edition that government policies to fight climate change are discouraging oil companies from investing heavily in new production even as they turn in record profits. A Reuters dispatch to The Globe reports that instead of spending big to increase output, companies are boosting dividends or buying back shares to reward investors. Environmental groups say slowing production growth could expedite a move to renewable energy and curb carbon emissions. However, lack of drilling investment could exacerbate energy shortages in poor countries and fuel inflation, executives warned at the World Petroleum Congress this week. Exxon Mobil chief executive officer Darren Woods said oil and gas reserves are depleting at 5 per cent to 7 per cent annually. Uncertainties about government policy are a bigger factor restraining investment, said Alex Pourbaix, executive chair of Cenovus Energy. "If you want to add 100,000 barrels a day of production, you're going to spend billions and billions of dollars," Mr. Pourbaix told Reuters. "In terms of any real meaningful investment in large projects, that's probably going to have to wait for some more clarity on the government front."