November 8, 2018 Read More →

Ominous future for the oil and gas industry

According to IEEFA, investors who once considered the energy sector a source of stable returns, best look elsewhere. The lawsuit suggests that ExxonMobil’s reserve calculations, properly accounted for, would show a much smaller company with a significantly diminished long-term outlook.

For decades, fossil-fuel rewards were excellent, and the risks minimal. The oil and gas sector was linked in lock-step with economic growth.

However, today’s risk-reward calculations suggest that the time-honoured investment thesis of ‘drill, drill, drill’ has run its course. Fossil fuel stocks now offer investors a lose-lose proposition, where current finances and economics offer smaller returns, and where future returns predicated on climate policy shifts throw company finances into a long-term lose scenario.

Ominous future for the oil and gas industry

Posted in: IEEFA In the News

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