This week Jim Cramer came out and said "fossil fuels are dead." I know, I know..."Cramer say it, bet against it. Guy is crazy."
Hearing what he is saying though, there's a ton of truth to it. O&G is being treated like the cigarette industry was 30-40 years ago. From a global perspective, big financial institutions are pulling out their investments in the industry. Stocks are getting hammered, and not just because of some of the failure management teams over the last 10+ years.
Whether you believe in climate change or not, the reality is the world is quickly changing and it appears headed away from fossil fuels as fast as it can (yes, still a huge elephant to eat on the front of displacing the need for them).
Again, not placing this here for a climate change or political debate. I'm in the industry and have been for just under 15 years. You have to wonder where it will be in another 15 years...and when you consider the amount of service providers, attorneys, bankers, gas station workers, royalty owners, truckers, pumpers, steel producers, etc. that are not working for the E&Ps but directly tied to their success...then the amount of restaurants, real estate workers, cities, doctors, etc. that are very much indirectly tied to it. Hard to imagine what the effects of this movement might ultimately be.
Maybe O&G comes roaring back after the lack of investment creates a huge price spike (as supply drops). Maybe Tesla and other electric car makers fill that void of declining production. IDK. Interesting times.
Cramer
Hearing what he is saying though, there's a ton of truth to it. O&G is being treated like the cigarette industry was 30-40 years ago. From a global perspective, big financial institutions are pulling out their investments in the industry. Stocks are getting hammered, and not just because of some of the failure management teams over the last 10+ years.
Whether you believe in climate change or not, the reality is the world is quickly changing and it appears headed away from fossil fuels as fast as it can (yes, still a huge elephant to eat on the front of displacing the need for them).
Again, not placing this here for a climate change or political debate. I'm in the industry and have been for just under 15 years. You have to wonder where it will be in another 15 years...and when you consider the amount of service providers, attorneys, bankers, gas station workers, royalty owners, truckers, pumpers, steel producers, etc. that are not working for the E&Ps but directly tied to their success...then the amount of restaurants, real estate workers, cities, doctors, etc. that are very much indirectly tied to it. Hard to imagine what the effects of this movement might ultimately be.
Maybe O&G comes roaring back after the lack of investment creates a huge price spike (as supply drops). Maybe Tesla and other electric car makers fill that void of declining production. IDK. Interesting times.
Cramer
