Three Myths About the Oil and Gas Industry's Future and How To Counter Them

摘要

What are the most important trends in energy? If you follow mainstream press accounts,there are at least three: 1.The oil and gas industry will soon face radical restrictions as countries respond to climate change.2.The rapidly growing electrical vehicle market will make oil obsolete.3.The world is quickly moving toward 100% renewable energy.All of these supposed trends are part of an overarching narrative that says we are in the midst of an energy transition: the world is moving quickly and inevitably away from”dirty”fossil fuels to”green”solar,wind,and batteries.Regardless of whether the”transition to renewables”narrative is true,the wholesale belief in that narrative poses a threat to oil and gas companies.A recent survey of top fund managers,including BlackRock and HSBC,found that 90% believe international oil and gas companies will be negatively revalued in a few years because of climate and energy transition risks-and many think this negative revaluation has already started.