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>at nearly USD1T. At today's prices. Do you really think oil demand will continue for the next 50-100 years at this level with all this investment in renewable
by drzaiusapelord 9y ago
>at nearly USD1T.
At today's prices. Do you really think oil demand will continue for the next 50-100 years at this level with all this investment in renewables? We're currently at a price slump close to pricing from two decades ago.
Its a little presumptuous to think oil will continue to have this value.
- PeterisP 9y agoWhat do you mean "at today's prices"? The Norway sovereign fund isn't the valuation of their oil businesses, it consists of 1T investments in non-oil businesses, including renewables, that have been funded by oil that's already sold at yesterday's prices. If oil become worthless tonight, they'd still have the 1T fund and it's ongoing proceeds.
- mattkrause 9y agoThat's the whole point of the fund--it's invested in things that are not oil. Wikipedia says it's a mixture of equities (60%), government bonds (25%), corporate bonds (10%) and real estate (5%). If (when) oil profits vanish, these investments will still be there. In fact, since they are legally unable to withdraw more than 4% of the fund's value each year (and typically make more than that), it should continue to grow indefinitely. The fund has a really interesting set of ethical guidelines--they won't invest in tobacco companies, companies causing severe environmental damage, or those involved in nuclear weapons or cluster munitions, for example.