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“This is like praising Exxon Mobil Corp. for taking other oil-company stocks out of its 401(k) plan. Sure it has sold some oil stocks. But it remains an oil com
by tuna-piano 9y ago
“This is like praising Exxon Mobil Corp. for taking other oil-company stocks out of its 401(k) plan. Sure it has sold some oil stocks. But it remains an oil company! “
“Norway is a petrostate with a sovereign wealth fund, and it has sensibly decided that that sovereign wealth fund will do a better job of diversifying the country's wealth away from oil if it does not also buy oil stocks. Norway has plenty of oil! “
https://www.bloomberg.com/view/articles/2017-11-17/absent-regulators-and-activist-votes https://www.bloomberg.com/view/articles/2017-11-17/absent-re...
- sova 9y agoFace it dude, fossil fuels are a thing of the past.
- vidarh 9y agoThat may eventually be true, but that just underlines that there are economic reasons to diversify whether or not you care about the environment.
- amontes 9y agoThe bottom line is these companies are being valued by the market based on the assumption that they'll be able to sell the barrels of oil in their proven reserves. If those reserves are "unburnable", the current valuations are not accurate, because the market for their product will be much smaller. Either they are valued correctly, or we're going to take action that prevents the worst effects of climate change - but it can't be both.
- jabretti 9y agoAnd also the present, and at least part of the future.
- grogenaut 9y agoOil isn't just about fuel. What's that computer or phone you typed this on made out of? Generally not wood, clay or pure steel.
- Neeek 9y agoAren't all of those things only a tiny fraction of our oil usage though? The entire global plastic industry accounts for < 5% of the oil we dig up IIRC. The vast majority is turned in to fuel.
- grogenaut 9y agoLikely true. However that will need to last us a long time. 5% of oil is still a very large industry.
- pc86 9y agoYes, plastic is so passé.