The Oil Industry, Ethics, and Wall Street

Do you remember the wonderful 1987 movie “Wall Street” with Gordon Gecko (Michael Douglas) and Bud Fox (Charlie Sheen)? Well, I just got off the phone from a cold call from an aggressive young promoter from Morgan Stanley who brought the whole terrific story rushing back to me.

I sympathized with the kid – in his 20s or 30s, trying to make a living – perhaps a big break – in an attempt to establish a relationship with a big-time Wall Street investor like me (joke). But the conversation was no joke at all.

“What is your position on oil?” I asked.

“They make money, and that won’t change anytime soon,” he said. “It’s the world’s most valuable commodity.”

“But what are the fundamentals that might change the price of ExxonMobil, Chevron, BP, Shell, etc? What about the externalities?  Renewable energy?” I asked.

“We’ll deal with that when and if it comes. The oil industry intends to be around as long as it possibly can – just like all industries like buggy whips before it.  They hung on and make their profits until the very end.”

We chatted amiably for a few moments about clean energy.

“Do you mean will the oil industry destroy the environment?” he asked? “Maybe. But at that point, the whole investment community, and everyone else, will know that – and the big money will be moving a million miles an hour into something else.”

Sorry. I hate to sound holier than thou. And I’m not saying that I don’t want to get rich. But I can’t play that game.