This summer, there have been amazing developments with the oil and gas industry that have everything to do with climate change.
I couldn’t make this up if I tried.
First of all, in the Netherlands, Royal Dutch Shell sustained a court ruling that required that they reduce their carbon emissions by 45% by 2035 (that actually may be too late, but I’ll hold my tongue).
How did this fantastic result come about?
Seven activist groups, including Friends of the Earth and Greenpeace, on behalf of 17, 200 Dutch citizens filed suit and held Royal Dutch Shell to the standards of the Paris Agreement.
G-d bless them!
Of course, Shell will appeal, but hopefully, they will be held to these carbon emission standards. And they will try to continue emitting their poisons until they are forced not to.
However, this other situation provides a way to put the heat on Royal Dutch Shell and other companies whose riches come from fossil fuels.
Exxon Mobile had a shareholder takeover. I know, you’re yawning. Stay with me.
Ostensibly, they’re pissed off because they are receiving fewer returns on their investments. It turns out that big oil is not providing the profits investors seek (that sound of cackling is coming from me. I will try to keep it down).
However, and I’m quoting this article:
The critical question for corporate leaders and shareholders is how best to close the performance gap, whether by squeezing better returns from existing oil and gas businesses or pivoting to new energy sectors . . . If the companies decide to adapt their businesses, the secondary question is how far and fast to exit from oil and gas to move into the new businesses with fewer CO2 emissions, identifying the maximum risk-adjusted return path.
Oil majors are under pressure from environmental organisations to align their long-term business strategies with the net-zero emissions targets and global temperature goals agreed by political leaders at UN climate conferences.
Do you see what I’m seeing?
I never thought I would ever write this next sentence, but this could be a good time to invest in fossil fuel companies. Shareholders seem to have much more leverage over them, and one could be in the hornet’s nest and make sh*t happen.
However, this strategy could not be done individually. We actually would have to pool resources. Of course, I have thoughts about that.
Intrigued? Send me a note through my website.
In solidarity with not making human beings extinct.