Found this article on Bloomberg news. Sentiment re oil and gas is changing for the better.·
PrivateEquity Is Pouring More Money In Oil And Gas
By Irina Slav - Aug 20, 2022, 4:00 PM CDT
· The ESG investmenttrend in private equity remains strong in 2022.
· PE Investors areconcerned about the long term profitability of oil and gas portfolios.
· As oil and gas pricessoared over the past year, so did investments in the industry, and they arestill rising.
In February this year, The Guardian published exclusively a reportby two non-profits that detailed the participation of the world’s largestprivate equity firms in the oil and gas, and coal industries.
Dubbed “private equity’s dirty dozen”, the report featured the names of giants such as KKR, the Carlyle Group,Blackstone, and others. It was an example of the new but quickly evolvingnaming and shaming trend that started on social media but clearly found fertileground in traditional media, too.
Now, the Wall Street Journal reports, private equity companies are having to convince investors thereis still money to be made in oil and gas. Some firms, the report notes, “havebeen sending articles, reports and presentations to investors highlighting theimportance of oil and natural gas during the transition to renewables. Theeffort comes as investors continue putting less money into fossil fuels.”
The reason that investors are putting less money into fossil fuelscomes down to the energy transition. With company after company—including PEmajors and Big Oil—making net-zero commitments and with institutional investorsdeclaring they would dump their oil and gas holdings, it isn’t hard to see whyinvestors are getting wary of the fossil fuel industry.
Campaigning is strong, too. Recently, the chair of the Church ofEngland Pensions Board was targeted for keeping shares in Shell, where he has worked in thepast. The Church of England itself has been the target of criticism for notdivesting its oil and gas holdings, unlike a couple of other churches in Britain.
Also recently, Reuters reported that an Australian pension fundhad divested $133 million worth of investments in oil, gas, and coal. Ofcourse, the biggest news was the Norwegian sovereign wealth fund saying acouple of years ago that it would divest oil and gas holdings, although manymissed the small print: the fund was only going to divest from E&Ps, keeping the integrated oil and gas companiesin its portfolio.Related: U.S. Rig Count Stalls
All in all, however, there has been a clear trend towards exitingoil and gas amid their fast-crumbling reputation as report after report blamedone single industry for all negative effects of human activity on the climate.
No wonder that in such an environment, investors would think twiceabout where to put their money. For some, it’s a question of beingenvironmentally responsible—the ESG investment trend is not on paper only. Forothers, it’s a much more pragmatic question of whether oil and gas keep makingmoney over the long term.
According to the new PE army of oil and gas defenders, they will,the WSJ reported this week. Arguments focus on renewables and the fact thatthey cannot be rolled out fast enough at a scale that will make oil and gasobsolete. A major aid in the argument is the current energy crisis grippingEurope, which has prompted the continent to significantly boost its fossil fuelconsumption.
Some noticed that. They also noticed how fast—much faster thanexpected—oil demand recovered after the Covid lockdowns. They also noticed itreturned to growth even though BP had predicted that demand had peaked in 2019.And then BlackRock said in May this year it would vote against climate resolution asthey were becoming too extreme or prescriptive.
In Europe of all places, private equity investment in oil and gasis picking up, according to a recent op-ed in Energy Voice by Cleary Gottlieb partner Mike Preston. Hereported that as oil and gas prices soared over the past year, so didinvestments in the industry, and they are still rising.
“Although committed to achieving net zero across its portfolio by2050, Vanguard doubled down on investment in fossil fuel projects and refusedto end support for coal, oil and gas production, citing its fiduciary duty tomaximise investment returns,” Preston noted by way of an example.
In the U.S., however, private equity raised some $2.98 billionacross seven oil and gas funds in the first half of the year, the WSJ reports.This was 40 percent lower than the amount raised in 12 oil and gas funds in thefirst half of 2021. Investors appear unconvinced oil and gas have a brightfuture ahead of them.
The latest news from the litigation department is unlikely to help changethat. A federal appeals court ruled that lawsuits brought by states and citiesagainst oil companies should be tried at the state level, not in federalcourts. This means that plaintiffs theoretically have a much better chance tosue successfully and it means potential compensation expenses for oilcompanies.
Of course, the targets of these lawsuits are Big Oil majors, notindependent E&Ps, but the fact that states and cities are going after theindustry may be enough to discourage some investors. Perhaps private equityfirms will need to put a greater effort into promoting their oil and gas fundsto keep their often very lucrative affair with fossil fuels going.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
· Wall Street Sees Another Big Commodities Rally In 2022
· Germany Lowers Gas Sales Tax To Ease Burden On Consumers
· Natural Gas Demand Outpaces Production
Download The FreeOilprice App Today
SHAPE \* MERGEFORMAT SHAPE \* MERGEFORMAT
AROUND THE WEB
Easiest Way to Get Rid of Moles and Skin Tags at Home! (Try Today)
Smart Life Reports
12x Better Than Solar Panels? Prepper's Invention Takes AU byStorm!
Power4Patriots Club
You'll Never Think About Solar Panels Again After Watching This
The Daily Survivor
Anyone with Hair Loss Should Watch This (They Hide This from You)
The Daily Survivor
Anyone With Arthritis Should Watch This (Big Pharma Companies HateThis!)
The Daily Survivor
Australians: Doctors Stunned - Do This Every Evening & LoseYour Weight
Healthier Living Tips
Anyone Who Wants To Lose Weight Needs To Check Out ThisAfter-Dinner Ritual!
The Daily Survivor
Anyone with Vertigo Dizziness Should Watch This (They Hide Thisfrom You)
The Daily Survivor
Anyone with Diabetes Should Watch This (What They Don't Tell You)
Control Sugar Levels
FACEBOOK TWITTER GOOGLE+ LINKEDIN REDDIT PRINT
Related posts
Demand FearsFail To Keep Oil Prices Under $90
Europe’s GasPrice Is Now Equivalent To $410 Per Barrel Of Oil
MOST POPULAR
Oil Jumps OnMassive Crude Inventory Draw
SPONSORED FINANCIALCONTENT
An exceptional platform, and 24/7 support. All trading involves risk.
Aramco StandsReady To Boost Oil Output To 12 Million Bpd
Oil MarketSurplus Strengthens Case For New OPEC Output Cuts
DisappointingChinese Demand Takes Toll On Oil Prices
Venezuela HaltsOil Shipments To Europe, Demands New Concessions
SHAPE \* MERGEFORMAT SHAPE \* MERGEFORMAT
SHAPE \* MERGEFORMAT
By signing up to ournewsletter, you agree for your email address to be shared with our third partymail providers.
TRENDINGDISCUSSIONS
· Is Europe heading for winter of discontent with extensive gasshortages?
Posted by [email protected]
...
· GREEN NEW DEAL = BLIZZARD OF LIES
Posted by JoMack
As Biden, the President of ClimateChange, and Kerry, our fabulous Climate Czar, who just gave...
· What-If - Russia decided to take out the Saudi and Kuwaitoilfields
Posted by 247Futureseeker
Curious to see what others would think it Russia decided to takeout the oilfields of Saudia Ar...
SHAPE \* MERGEFORMAT
· About Us
· Sitemap
· Site info
The materials provided on this Website are for informational and educational purposes only and are not intendedto provide tax, legal, or investment advice.
Nothing contained on the Web siteshall be considered a recommendation, solicitation, or offer to buy or sell asecurity to any person in any jurisdiction.
Trading and investing carries a highrisk of losing money rapidly due to leverage. Individuals should considerwhether they can afford the risks associated to trading.
74-89% of retail investor accountslose money. Any trading and execution of orders mentioned on this website iscarried out by and through OPCMarkets.
Merchant of Record: A Media Solutions trading as Oilprice.com
Found this article on Bloomberg news. Sentiment re oil and gas...
-
- There are more pages in this discussion • 69 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add CVN (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
15.8¢ |
Change
-0.003(1.56%) |
Mkt cap ! $281.7M | |||
| Open | High | Low | Value | Volume |
| 16.0¢ | 16.3¢ | 15.5¢ | $343.4K | 2.149M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 28 | 2245329 | 15.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 16.0¢ | 1469579 | 17 |
View Market Depth
| Last trade - 14.25pm 07/11/2024 (20 minute delay) ? |
| CVN (ASX) Chart |