The long overdue blackout for Big Oil, Coal & Gas?
The Teck Frontier mine — the largest proposed mine the dirtiest oilfields in the world — got cancelled last week. Also last week, oil prices dropped to what could be a four-year record. OPEC is curbing production in response. Oil stocks are some of the most overvalued stocks and investors are turning away from them.
Western Canada is heating up over oil and gas. Debates, protests and blockades are firing up across the country. Alberta is ramping up efforts to expand the oil industry at any cost. British Columbia is betting on “Clean Natural Gas.” Despite gargantuan efforts to sell oil and gas to the public, only a reported half are buying in. Climate action is trending.
Crude oil requires refineries once extracted. Canada lacks the capacity. So does Asia where the increased oil production is allegedly meant to go. California has the capacity.
To extract crude oil, lots of natural gas is required. Northeastern British Columbia is a fracking hot bed that blankets over into Alberta’s oil sands.
All the while, investors, led by BlackRock Inc. have shifted the course of the cash flow into fossil fuel projects.
The bandwagon is now headed towards hydrogen fuel and renewables. LNG is predicted to still play a large role with current prospects. But oil and coal? No Bueno. Piling up are commitments by company after country for: carbon neutrality. BP has a new CEO. One statement trumps the last.
Those are the words of Wes Edens — billionaire chief executive of New Fortress Energy LLC — a LNG giant. Edens’ approach: Hydrogen Fuel.
How long will the transition rely on LNG? We don’t know yet. But Americans know that electricity utility valuations just soared past those of gas (and oil, obviously).
Two more things are becoming certain: Coal is out, oh and oil projects are getting cancelled.
