What Do Oil & Gas Companies Know About Renewable Energy Investment Anyways?
Peter Fusaro, writing yesterday in the Risk Center’s Risk Alert newsletter (see Why Energy Companies Are Not Investing in the Future?, March 3rd), laments the lack of energy company investment in renewable energy, cleantech, etc. In the face of a a future carbon constrained world with potential peaks in conventional oil & gas reserves, Mr. Fusaro points out that the energy industry is “awash in capital but seems content on stock repurchasing and dividend boosting”. He goes on to argue that: “the major oil companies are now in a liquidation phase of their existence. Their reserves-to-production ratio is declining and they are now begining to peak as they now produce and monetize their depleatable assets. Investment in a new energy future is not being pursued by nmany energy companies yet. I see the energy companies, therefore, as the buyers of new clean energy technology, not the innovators producing them.”His arguments brought to mind last week’s announcement by BP, that it was conside
