Big-Oil CEO Faces His Failure by Keeping His Eyes Closed about Global Warming

Head of Oil Company that’s Most at Risk Of Declining Value
From Oil & Gas Is Burying His Head in the Tar-Sand About It
According to the landmark study of the impact that the rising world concerns about global warming will have destroying the market-value of oil company stocks, no large oil company is as vulnerable as Norway’s Statoil, but Statoil’s head says that he must drive his firm, and implicitly therefore Norway’s economic future, down the drain of this declining market-value. His response to the challenge, he says, must be to drive his corporate ship even straighter into the coming economic abyss for fossil-fuels firms.
He says:
Many people want Statoil to invest in all types of renewable energy activities. Often with no concern for whether the company can achieve realistic profitability within a reasonable time span. It is an easy stand to take for people who are under no obligation to run a profitable business. But I know who will be blamed if Statoil decides to invest five billion Norwegian Kroner in something which is in today, but turns out to be a fiasco in five years’ time,
The headline and sub-head of that article is: ‘Helge Lund uncertain about Statoil’s green future: It is not given that Statoil will become a green company.’ It was published on 21 August 2010, in the Norwegian newspaper, Stavanger Aftenbladet.
The reporters at Aftenbladet wrote: ‘He believes that one of the most important tasks for the years ahead is to reduce the cost of renewable energy.’ But nothing indicates that his firm (the one firm that’s the most at-risk of a big global-warming market-value hit) should hotfoot the way into this ‘green’ direction – switching away from investing in oil and gas, to investing instead in renewable energy. Exactly the contrary, in fact. Statoil’s President/CEO said:

This post was published at Washingtons Blog on September 4, 2014.

 

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