Another Nail in the Coffin for Fossil Fuels
What happens when capital dries up? The entire industry slides inexorably into oblivion.
Fossil fuels made the 20th Century what it was in terms of economic growth and massive improvements to human well-being. Now it’s time to move on.
Craig,
This is your 10 year at least where you have prophesied the end of oil company investment.
Curiously, with each passing year as it becomes more and more obvious that investment in fossil fuels, especially gas, hasn’t decreased in the slightest, you desperately continue to find these obscure references.
There is no “drying-up” of investment capital for fossil fuels.
The European Investment Bank (EIB) is own by the Member state of the EU. Conceived as nonprofit long-term lending development institution, drawing funds from EU member states.
It has certainly lived up to its charter, it’s not only non-profit, but the EIB has produced huge losses ! However, that’s the advantage of being owned by governments, the EIB can simply hold out its hand for more taxpayer money.
The EIB uses its government guaranteed status to secure a AAA credit rating and funds itself by raising equivalent amounts on the capital markets cheaper than private institutions.
But is the EIB really effective in divesting itself from fossil fuels?
The answer is yes, and no. On the one hand, governments certainly have a real incentive to regulate and produce favorable conditions for renewable energy.
On the other hand, divestiture from fossil fuels simply damages the retirement industry and national energy costs, driving European governments to become more reliant on Russian oil, gas and bio-mass (pulped wood).
For the EIB, like most financial institutions, such unrealistic requirements produce an atmosphere of corruption and hypocrisy.
The EIB invests in various high yield Euro bonds etc, issued by various EU nations, these institutions in turn invest in other financial instruments from institutions which invest or underwrite funding to various fossil fuel corporations.
All this hypocrisy may cost the average consumer a few cents per gallon extra, but all the brokers and middlemen make a fortune!
A huge industry has grown up world-wide,employing more than 1,200,000 highly full time employees. This industry exists solely to oppose fossil fuel companies. While a percentage of the funding comes from donations, over 80% is funded by taxpayers around the world.
This cost of this huge industry which produces nothing but advocacy, is largely unnoticed by the media, economists and politicians.
A study is being currently being compiled into the size and nature of funding sources for the “green” or “environmental’ movements and how the money is being spent.
The researchers have been met with considerable resistance and even threats of violence.
Previously “Anecdotal only” evidence of “money laundering” and “covert political” corruption, even criminal activity involving many large “green” organizations is beginning to be tracked and verified.
Russian and Chinese intelligence organizations have been linked with the financial activities of some of the better known Environmental organizations while some of the less well known are obvious fronts.
The investigations are still in their infancy, as time progresses the level of penetration will become revealed despite many of the major players being Western Agencies or criminal cartels.
Craig,
I thought I’d just expand a little on yesterday’s comment.
Today, two small fossil fuels companies listed on the Stock Market for the first time.
Both were over subscribed by at least three times in the IPO.
In a time of very low, even negative, interest rates any company offering high returns will attract investment.
Two of the major subscribers were subsidiaries of entities financed by the EIB.