October 20, 2020 Read More →

Investors beginning to treat Big Oil like Little Coal

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The brewing storm of major financial institutions divesting from Arctic and oil sand drilling signals a dark future for oil and gas, finds a new investigation from the Institute for Energy Economics and Financial Analysis (IEEFA).

The investigation, published today, quantifies the scale of shifts among large investors. The World Bank, BPN Paribas, Goldman Sachs, Wells Fargo and Morgan Stanley have been named as announcing formal exits from oil sands and/or arctic drilling practices. This change has been driven mostly by European financial institutions, but also by six major institutions in the United States, and has been accelerating this year, with another 23 institutions adopting such policies, taking the total to more than 50.

The significance is that – like the coal industry before it – big investors are quitting oil and gas investments where the environmental risks are great, and the costs are higher. It’s the likely first step in an inevitable wave of disinvestment that will sweep the industry.

“Many financial institutions started with divesting coal and then moved to Arctic and oil sands exclusions but with pressure mounting on plastic pollution, and fossil gas no longer being viewed as a bridge fuel, financial restrictions are likely to expand to ethane crackers and new gas investments soon,” says IEEFA’s Tim Buckley. 

[Staff Report]

More: Oil and gas destined to become the new coal as big investors retreat

Posted in: IEEFA In the News

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