{"id":5878,"date":"2021-09-02T13:50:32","date_gmt":"2021-09-02T20:50:32","guid":{"rendered":"https:\/\/stillwaterassociates.com\/?p=5878"},"modified":"2021-09-02T14:19:43","modified_gmt":"2021-09-02T21:19:43","slug":"the-oil-industrys-bright-green-energy-future","status":"publish","type":"post","link":"https:\/\/stillwaterassociates.com\/the-oil-industrys-bright-green-energy-future\/","title":{"rendered":"The Oil Industry\u2019s Bright Green Energy Future"},"content":{"rendered":"
<\/a><\/p>\n September 2, 2021 The Oil industry is under pressure on many fronts in the climate change era, not least of which is from their shareholders.<\/p>\n First, the background, from the investors\u2019 perspective. Over the past 15 years, the annual total returns to shareholders for the average oil and gas company has lagged the S&P 500 by seven percentage points. Oil stocks, accounting for more than a tenth of the bellwether index barely a decade ago, now account for just 4% of the S&P 500. This suggests the sector\u2019s traditional business model has been under stress for some time.<\/p>\n Add to that the existential threat posed by the sort of competitor that the industry has never faced in the past – a competitor based on renewable sources of energy, as an alternative to fossil fuels, that is being heavily supported by governmental carbon emissions reduction mandates around the world.<\/p>\n It\u2019s not hard to foresee a world where renewable energy will increase, and fossil fuels decline \u2013 the prediction of BP Energy\u2019s Outlook 2020<\/em> \u2013 so investors are putting the Oil Industry under the microscope and are increasingly seeking out positions that reduce their exposure to climate change.<\/p>\n
\n<\/strong>by Mike Newman<\/a>, Director of\u00a0Parhelion Underwriting<\/a><\/strong><\/p>\n