A dark cloud hangs over the energy sector as it faces a climate change reckoning. But some are convinced there is money to be made as the world recovers from COVID-19.
Not long ago, the only pressure for oil and gas companies to clean up their act came from the protests outside their office towers. Next it was at their investor meetings, from activists taking over question time or lobbying for larger emissions cuts. These, too, could often be ignored. But now, the winds of change are blowing in boardrooms.
The shock is reverberating industry wide. And for Australia – as one of the world’s biggest exporters of liquefied natural gas – the implications could be severe. “Anyone who tries to go for a final investment decision on a new field in this year, 2021, needs their head looked at,” Bourne says. “There are too many things monotonically taking us toward a geopolitical effort to decarbonise really fast.”
“The fact of the matter is oil and gas is probably the number one thing that has improved living conditions around the world since the history of humankind.”While he has noticed more Tesla electric cars on the roads, Fromm, who manages more than $886 million in a global resources fund, says this has not translated to falling demand for oil.
While oil and gas companies have become increasingly taboo to own, the fund’s chief investment officer Simon Mawhinney believes current share prices are out of joint with their value. “Clearly the commodity is structurally challenged on a longer-term basis, there is no question about that whatsoever,” he says. “But in the neartime, we see one last bull cycle.”“Clearly the commodity is structurally challenged on a longer term basis, there is no question about that whatsoever. But in the neartime, we see one last bull cycle.”At investment bank UBS, head of Australian energy and utilities equity research Tom Allen has a “buy” rating on the entire local energy sector.
Andrew McConville, chief executive of the Australian Petroleum Production and Exploration Association, says that the IEA’s latest modelling related only to one possible scenario out of about 90, and should be taken with a “grain of salt”. On whether it’s a “watershed moment”, opinions are mixed. But either way – as Michael Irving, a senior executive at Australian gas pipeliner Jemena, explains – last month showed the “wave has started to break”.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
No new Queensland COVID-19 casesQueensland has recorded no new COVID-19 cases, easing concerns about new local infections after a couple who travelled from Victoria to the Sunshine State tested positive earlier this week.
Read more »
'It's good news': Victoria records zero new local COVID-19 cases as Melbourne emerges from lockdownVictoria's Acting Premier James Merlino has thanked all Victorians after the state recorded no new local coronavirus cases on Friday but urged people not to get complacent.
Read more »
Experts reassure Australians of COVID-19 vaccine safety following blood clot deathAustralians are being urged to be informed, but not alarmed, about a very rare blood clotting condition linked to the AstraZeneca vaccine, following the death of a 52-year-old woman in New South Wales.
Read more »
No new COVID-19 cases in Melbourne on first day of lockdownVictoria has recorded no new local cases of COVID-19, on the first day after Melbourne&x27;s hard lockdown lifted.
Read more »
Melbourne couple, infected with Covid-19, travelled from Victoria to Queensland by car during lockdownA Covid-positive Melbourne couple who travelled through NSW and Queensland may not have broken any lockdown rules, Victorian officials have revealed.
Read more »
Victoria records single new COVID-19 caseVictorian authorities have warned against complacency as testing numbers drop despite a new mystery COVID-19 case emerging overnight. 9News
Read more »