Oil and other fossil fuels are going through difficult times right now: authorities are demanding radical changes in the sector and everyone is against Big Oil… Except Bill Bonner.
The last days of May were “transformational”. Yes, that’s the term used: an inelegant and jargonous neologism… which conceals a mountain of nonsense.
Two “transformational” things have taken place …
Joe Biden announced a new budget, predicting that $ 6,000 billion will change hands. CBS News tells us more:
“Despite a campaign based, to some extent, on moderation, Mr. Biden’s budget is, in the words of White House officials on a conference call with reporters, ‘transformational,’ and charge a broader role for government in the social safety net. “
We’ll get to that, of course… but for today, let’s start connecting the dots by looking at another transformation underway – that of the oil sector.
A difficult period
The oil companies are indeed going through a difficult period. According to CNBC:
“Some of the world’s largest greenhouse gas emitting companies have suffered a series of historic board and court defeats, indicating that investors are losing patience and now clamoring to act much faster to counter the climate emergency.
Within hours on Wednesday, shareholders of US oil giant ExxonMobil backed demands by a small activist hedge fund for a review of the company’s board of directors, investors in US energy company Chevron defied management around a crucial climate vote, and a Dutch court ordered Royal Dutch Shell to take much more aggressive action to reduce its carbon emissions. “
It was “the day the world changed for Big Oil According to a Bloomberg headline.
The International Energy Agency, for its part, rebukes us and demands that we drastically reduced our dependence on fossil fuels. She also called for ending sales of all combustion engine vehicles by 2035.
According to an article in Wall Street Journal, the agency wants all investments in the fossil fuel sector to end “immediately”.
As for the aforementioned Dutch court, it ordered the Royal Dutch Shell to take more serious measures to protect the planet … otherwise, the company would be accused of causing environmental damage. The company is expected to halve its global carbon emissions over the next nine years.
Hmm… it’s more or less like ordering a candy store to stop using sugar, or asking a panda to drop the bamboo. Certainly, it is a “transformation”. But the panda dies.
The French oil giant, Total, has taken a head start: its shareholders have voted to change its name to TotalEnergies. According to Europe 1, “ [ils] approved a climate strategy as well as the new name, designed to represent the new goals [de la société]. “
Never since the tobacco sector in the 1970s and 1980s has a sector been subjected to such pressure and forced to such gymnastics. His product is now considered harmful to the whole world. From a pure public relations standpoint, Exxon might as well be doing slavery.
Yet energy (including large companies in the sector) figures on the “buy” side of our Transaction of the Decade. Fossil fuels are essential to maintain the current standard of living.
Not only that, but if good souls are to switch to solar panels and wind turbines, they’re going to need a lot of oil to make it work. Transformations are also energy intensive!
So what awaits the oil companies?
To be continued..
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