My professional trade for almost 20 years has been management consulting. I work in strategy and change - my phone rings when a company wants to pivot or when things go to hell. 5 years ago when oil went from $100/bbl to $20/bbl, my phone started ringing in Texas. I had been working on Wall Street since 2007 or so.
This year, many of the oil majors (especially European) have changed their strategy. Even with oil rebounding into the $40s, the majors are rebranding themselves as energy companies, not oil and gas. It's breathtaking - 2.5 years ago I worked on one of the largest asset acquisitions in the industry (in the Bakken). That has since been heavily written down.
There is no question the energy density of hydrocarbons will have a place in our world for a very, very long time. But the applications that require that energy density are quickly reducing. Many, not all of the majors have begun a long term pivot away from hydrocarbons. It's a complex industry with many facets and it will take a long time.
For leadership teams of many energy companies, the writing is in the wall. Whether it's dwindling reserves or dwindling demand or political headwinds, the days of unfettered use of hydrocarbons are numbered. The money is already shifting. Only the. Politicians are Saber rattling
Personally, my investment portfolio has $0 in hydrocarbons. No idea which way to play it.
Peter
... all out of troll food.
