The Anonymous Widower

Writing On The Wall For Oil Say Funds

The title of this post is the same as that of an article on page 37 of today’s copy of The Times.

This is the first two paragraphs.

Several big fund managers believe that oil companies should shut themselves down because soon they will be impossible to invest in as the world switches to tenewable energy.

A survey of 39 fund managers with $10.2 trillion under manaement found that 24 per cent wanted the oil industry “to wind down their businesses and return cash to shareholders” All but two of the funds  said that oil stocks would not be attrative investments within ten years if they failed to respond to climate risks.

It’s pretty strong stuff.

So could we see a reduction in the use of oil and gas as a fuel?

In some countries including Denmark, Iceland, the United Kingdom and the United States, renewable energy is growing at a good rate.

The UK did draw the full set, in being blessed with the full set of coal, oil, wind, wave and tidal. We also have a bit of geothermal, hydro and solar.

We will still extract coal, gas and oil, but not for fuel.

  • Very high quality coal is needed for steel-making, where carbon-capture could be used.
  • Gas and oil are used as chemical feedstock for plastics, everyday chemicals and pharmaceuticals.

Hydrogen gas, produced by electrolysis for use as fuel,  a chemical feedstock and central heating.

Shell have already purchased First Energy, who are a domestic energy supplier in the UK, so are they getting out of oil?

Are fund managers and oil companies starting to go in the same direction, with a lot of the world’s drivers sticking slavishly to petrol and the dreaded diesel?

April 29, 2019 - Posted by | Finance, Transport | , ,

1 Comment »

  1. […] On The Wall For Oil Say Funds anonw.com/2019/04/29/wri… […]

    Pingback by UK Listed Energy Storage Fund Seeks 182MW Battery Project Pipeline « The Anonymous Widower | April 30, 2019 | Reply


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