Re:Flood of Oil Is Coming, Complicating Efforts to Fight Glo...
by NeedMoreTea on Monday November 04, 2019 @12:17PM
(#21443817)
Of course it is - yet governments and investments are showing early signs of divestment, including by pension schemes. If regulations to require carbon impact become a consideration in investment, or market listing - there's early signs some are thinking in those directions - then those pension schemes will start voting inconveniently or divest more significantly. If one of the top 5 blocs bakes climate into their approach trade, things could change fast.
Exxon have the mass that it will take a great deal to actually impact, but large industries have been abolished or turned into niche industry before. No reason to believe it won't happen again.
Exxon doesn't change if it's share price declines, the lower the price goes, the more attractive the opportunity from a risk-reward perspective.
With pension funds and hedge funds hungry for yields, somebody will always buy.
To go with your police scenario: In the oil industry, the police officer protects you while picking up the $100 bill and takes a 25% cut. That's the story of many oil-rich nations.