Terence Corcoran: Which Energy Assets Will Be Stranded?
May 11th 2022
Friends of Science Extract from May 11, 2022
Since 2015 Mark Carney, former central banker, has been warning of a stranded asset scenario for oil and gas stocks, telling banks to get out of oil and gas investments while promoting the Net-Zero Banking Alliance. However, Warren Buffet, apparently not a follower of Mr. Carney, has been unloading bank and investment stocks while taking new multi-billion stakes on computing companies and energy stocks such as Occidental Petroleum and Chevron. Mr. Buffet is not alone, as global banks have poured $750 million into fossil-fuel companies.
Alberta energy writer David Yager summed it up in a recent commentary: “Rendering fossil fuels obsolete was conceived in a different environment than the one we live in today. That was Mark Carney’s world, and he was a star. But in our tumultuous new world, does Mark Carney’s stranded asset definition still mean anything?”
Mr. Corcoran wonders if governments will continue to fund wind and solar projects and massive expansions of their electricity grids in an attempt to knock out fossil fuels that are now in high demand. Also at risk is the money-losing carbon storage industry.
Friends of Science
https://friendsofscience.org/
Since 2015 Mark Carney, former central banker, has been warning of a stranded asset scenario for oil and gas stocks, telling banks to get out of oil and gas investments while promoting the Net-Zero Banking Alliance. However, Warren Buffet, apparently not a follower of Mr. Carney, has been unloading bank and investment stocks while taking new multi-billion stakes on computing companies and energy stocks such as Occidental Petroleum and Chevron. Mr. Buffet is not alone, as global banks have poured $750 million into fossil-fuel companies.
Alberta energy writer David Yager summed it up in a recent commentary: “Rendering fossil fuels obsolete was conceived in a different environment than the one we live in today. That was Mark Carney’s world, and he was a star. But in our tumultuous new world, does Mark Carney’s stranded asset definition still mean anything?”
Mr. Corcoran wonders if governments will continue to fund wind and solar projects and massive expansions of their electricity grids in an attempt to knock out fossil fuels that are now in high demand. Also at risk is the money-losing carbon storage industry.
Friends of Science
https://friendsofscience.org/
Photo by Wance Paleri on Unsplash
Click to close