August 23, 2017 Read More →

Fossil Fuel-Funded Report Shows Industry Making Its Last Stand

350.org:

On Monday, the Independent Petroleum Association of America issued a new report arguing that fossil fuel divestment is costly for students, pensioners, and stakeholders.

Tom Sanzillo, Director of the Finance Institute for Energy Economics and Financial Analysis (IEEFA.Org), said:

“For the last five years Exxon Mobil the oil industry’s leader has lagged the Dow Jones Industrial Average dramatically. In its place other stocks like Apple and Microsoft have driven the returns of institutional investors large and small. The rest of the oil and gas industry have done worse. Professor Bessbinder’s paper fails to mention this material fact and that the entire coal industry has collapsed financially and cost investors billions. As a former manager of a large public pension fund I would never hire an academic for investment advice or to advise me in fee negotiations. The Professor’s paper lacks an understanding of the divestment question, knowledge of the internal workings of institutional investors and any appreciation of the interaction of market forces and public policy.  “F” for missing the obvious, the fossil fuel industries are now less profitable than other stocks and face a negative financial outlook. Climate issues and structurally changing markets make past performance a very poor predictor of future profits.”

Fossil Fuel-Funded Report Shows Industry Making Its Last Stand

Posted in: IEEFA In the News

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