It is increasingly looking like COVID-19 could be Big Oil’s Kodak moment. For over a century these firms have been titans of business, offering a steady financial return in good times and bad. But most importantly, they have been immovable pillars of stone for investors in times of turmoil. Whatever the financial weather, the companies rewarded their investors. Although we are in times of trouble now, the supermajor oil companies, which we often describe as Big Oil: BP, Chevron, Eni, Exxon, Shell, Total, and ConocoPhilips, are anything but a safe bet right now. In the words of the business paper of record, the Financial Times: “Supermajors’ status as reliable income stocks questioned as earnings plunge.”
Oil Change International 1st May 2020 read more »
Shareholders in global miner Rio Tinto have rebuked the company over its climate stance, with 37% voting at a meeting in Australia for a resolution that would require it to set binding emissions targets. While the resolution did not pass, its sponsor, environmental group Market Forces, said it attracted six times as much support as an identical one put up at the same meeting last year. The vote “shows investors have woken up to Rio Tinto’s obfuscation and the huge risks to its business from climate change and transition,” Market Forces executive director Julien Vincent said. It comes after more than half of shareholders in Australia’s largest oil and gas producer, Woodside Petroleum, last week called on the company to set science-based emissions targets.
Guardian 8th May 2020 read more »
Coronavirus in the UK: Lockdown helps the UK break a record for the longest ever streak without using coal power. The nation’s power has not been supplied by coal for almost a month, extending Britain’s longest ever run without relying on the fossil fuel since 1882. Lockdown restrictions due to the coronavirus pandemic – plus a spell of good weather – is thought to have limited our need for energy for the last 28 days, with usage expected to drop even further during the Bank Holiday weekend.
iNews 8th May 2020 read more »