ESG investing, also known as sustainable investing, has witnessed explosive growth over the last few years. However, ESG critics are now claiming that ESG investing in its current form may not help the environment or create positive social change.
“Companies will continue focusing on producing efficiently and economically…That’s not going to change,” Travis Wofford, chair of Houston’s Corporate Department at Baker Botts, told Hart Energy’s Faiza Rizvi.
“Investors may still expect best practices from an environmental perspective and safety perspective and expect the same returns on investment,” he added.
Wofford also explained how the current market environment has made investors realize that fossil fuels are needed for a successful energy transition.
“There are many investors who had moved away from traditional oil and gas and their portfolios aren’t performing well,” he said.
“There was a moment in time when people had said oil and gas is not sustainable and we’re all going to move to net zero tomorrow,” he noted. “However, in the current commodity environment, people have realized that oil and gas isn’t going away and that you can have a sustainable product using existing hydrocarbon resources.”
2022-11-21 - The Wall Street Journal earlier on Nov. 21 reported an output increase of 500,000 bbl/d was under discussion for the next OPEC+ meeting.
2022-11-21 - Despite cutting its fourth-quarter 2022 forecast, Goldman Sachs kept its 2023 Brent forecast the same.
2022-10-07 - First offered in September, the sale was part of President Joe Biden’s previously announced plan to sell 180 million barrels of oil from the reserve to fight high petroleum prices after Russia's invasion of Ukraine.
2022-09-16 - Oil exports from Iraq's Basra terminal are being gradually resumed after a spill temporarily halted production.
2022-10-03 - Despite one of the tightest markets in recorded history, Goldman said the reported OPEC+ cut could be justified by the 40% decline in prices from their June peak and enabled by the lack of supply elasticity, given slowing shale activity and exhausted spare capacity.