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.
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.