So, who are you going to believe?

Him?

There is excellent, and wholly rational reason for not investing in oil now. It is that the worth of any company is dependent upon its future revenues. And these companies are as a result valued upon the basis of their supposed reserves. But the fact is that those reserves are going to have to stay in the ground if there is any hope at all that the world can survive climate change.

Norway is selling out of oil because it knows it has no future.

Or me?

Norway’s sovereign wealth fund – the Government Pension Fund – has just announced that it’s to sell off its stock in the gas and oil exploration sector. This makes very good sense indeed – so much so that they should never have invested in the sector in the first place. No, this is nothing to do with the climate crisis, nothing to do with stranded assets and all that malarkey. It’s just the simple and basic rules for investing – you diversify.

10 comments on “So, who are you going to believe?

  1. The obituaries for oil have been being written ever since the 1973 oil crisis. Do all the virtue signallers think that the 3 billion Africans who will be born during the rest of this century will all be driving electric cars. There won’t be the infrastructure to support it in the Third World* for decades yet. Once again the death of oil is being exaggerated.

    * There won’t be the infrastructure to support it in the First World with the switch to intermittent supplies of energy but that’s another story.

  2. With cars turning to electricity, this may be the time to invest in renewable energy.

    With cars turning to electricity, this may be the time to invest in the AA and the RAC.

  3. If spud thinks that climate change will be catastrophic then there in itself is an argument that climate science hysteria is nonsensical

  4. Clive/CleforTrefor/Vimsante= another troll active. Sounds a brainless special–pos the return of Meiac/Jesus–escaped from the halfway house?

  5. O/T but the brilliant Murphy Richards twitter account @Murphycandidtax is still suspended. Anyone know what happened?

  6. Ha. They will do it for the Worstall reason and claim it is done for the Murphy reason. Surprised they didn’t do it before to be honest; considering the asset/liability mix of the ‘client’ is a fairly normal thing to establish appropriate investment objectives.

  7. ‘But the fact is that those reserves are going to have to stay in the ground’

    Then all the fvcking investors will be dead, anyway. And Murphy, too.

  8. I think Ian is correct. There will certainly be growth in the number of electric cars sold, so perhaps the growth in gasoline cars will slow, but so long as you may want to take a long trip from time to time range will be a consideration. Statements to the effect that you’ll just have to accept long charge times will be ignored. People I know with an electric car do like them, but all of them also have a gas car.

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