The dam bursts….and I’m not talking about the one in Derbyshire



One recent story that much of the media missed was that Blackrock, one of the world’s largest asset management firms, lost some $90 billion investing in fossil fuel companies. As a result its reducing its investment in this sector and putting the money into renewable energy instead.

This answers a question I asked sometime ago, how long more is the financial services industry going to continue pouring good money after bad investing in fossil fuels. Well it seems we might be reaching the point where the dam has burst. The trouble is that since the 2000’s the CAPEX required to develop new oil field has been going up at the same time that the rate of return has been going down. This is not surprising as all the easy to produce oil and gas fields have already been drilled (or those fields have been exhausted). Those that…

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