Entering the fossil fuel business is becoming increasingly difficult. On both sides of the Atlantic, lawmakers and unelected bureaucrats are, so to speak, enthusiastic about the issue of climate change.
In the US House of Representatives, the Democratic Party has begun investigating whether oil companies have participated in so-called “climate disinformation.” Last week, executives from ExxonMobil, BP, Chevron and Royal Dutch Shell were sent a letter asking for records, and a hearing is scheduled for next month.
Meanwhile, the Securities and Exchange Commission (SEC) proposes a set of new disclosure requirements that all listed companies probably have to do at the end of the year to inform investors about potential climate risks associated with their businesses. Is expected.
In Europe, the strategy seems to be to block all lending to the fossil fuel industry. Next year, the European Central Bank (ECB) will investigate the trading operations of major banks, called the “stress test” of climate change, with at least one large activist investor group, ShareAction, having all its relationships with lenders. We are applying pressure to cut off. For fossil fuels.
Of course, none of this explains the fact that fossil fuels still supply about 80% of the world’s energy.
Alternatively, many major oil and gas producers are investing billions of dollars in renewable energies such as wind and solar and energy storage technologies. In fact, Chevron has just announced plans to triple its investment in low-carbon energy to $ 10 billion by 2028.
Can climate scientists be held accountable?
Climate change was paramount at the Gold Forum Americas Congress, which I attended and spoke in Denver last week.
In a conversation I had with some of my colleagues, the question was raised as to whether certain scientists could be held financially responsible for disinformation of their own “climate disinformation”. ..
Here’s what a colleague says: Almost every other profession, from doctors to engineers to money managers, has a mechanism to hold a malicious person accountable. Why not for scientists who can make promissory notes or misleading statements that have a significant impact on individuals or businesses?
This idea sounds ridiculous, but it’s not completely unheard of. In 2012, an Italian court found six seismologists convicted of manslaughter for failing to issue appropriate warnings about an earthquake that killed about 300 people. The ruling was overturned in 2014, but it had the effect of increasing vigilance for publicly-faced scientists around the world.
For clarity, I do not support prosecuting scientists for crimes. Modern technology is advancing to some extent, but it is still not possible to predict earthquakes with certainty.
The number of hurricanes landing in the United States is small and not many
Perhaps the same applies to climate. For example, we believe climate change is responsible for the increase in hurricanes, but the Environmental Protection Agency’s (EPA) data itself shows the number of North Atlantic hurricanes that hit the United States each year.Is trending under Over the last 120 years. To date, the most deadly natural disaster in US history remains the Great Galveston Hurricane that struck Texas City in 1900, years before Henry Ford began mass-producing the Model T.
I’m taking all of this for fighting choices. I happen to believe that the majority of climate scientists do honest work and have good intentions. The problem is that we also have the ears of agenda-led politicians and bureaucrats who are actively seeking new reasons to make energy and mining companies more difficult to manage.
The United States on the verge of becoming the G7 country with the fewest vaccinations
So far, I haven’t said anything about the role of the media in the spread of FUD, fears, uncertainties and doubts. The cause of many people’s anxieties can be not only the cable news channels that make everything sensational, but also the feet of social media platforms that have allowed false information to run wild.
Here, we will specifically talk about false information related to vaccines.
This topic was also covered in Denver. I have been fully vaccinated against Covid and have had a third booster shot, but many of my colleagues have not obtained the first jab. Whenever I ask why, I’m always told that I don’t trust the government.
If so, I say, do they own gold or bitcoin?
Aside from that, I believe the vaccine is our best hope to return to the pre-pandemic state. Airplanes and airports were full on the way to and from Denver, but commercial aviation traffic has declined by an average of about 25% since the same period in 2019, according to Transportation Security Administration (TSA) data. Many Americans choose not to be vaccinated.
In fact, the United States is becoming the least-vaccinated, high-income G7 country. The United States has the largest stockpile of Covid vaccines, and despite a dramatic positive start, the country will soon have the lowest vaccination rate of any G7 country after Japan surpasses it. Will have.
Ancillary costs helped keep airlines floating in 2020
It ends with some positive financial news from 2020. In a year when the demand for air travel was crushed by a pandemic, airlines managed to keep the lights on, mainly thanks to ancillary charges. As with general sales, incidental costs have declined absolutely, but last year they accounted for a larger portion of the airline’s total revenue.
Low-budget airlines seemed to benefit the most. Non-ticket sales were close to 56% of total Hungarian-based Wizz Air sales, higher than any other company. Spirit Airlines was the second closest, followed by Allegiant Air, Frontier Airlines and Ryanair.
Better news came out from Ryanair last week. Ireland’s low-cost carrier has announced that it will raise its growth target from the previous 33% to 50% over the next five years. This means that by 2026, Ryanair will carry more than 225 million passengers annually after expanding into markets such as Italy, Scandinavia and Morocco. By this winter, carriers want to operate about 90% of their pre-Covid capacity. Wheel up!
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Holdings are subject to change daily. Holdings was reported as of the end of the most recent quarter. The following securities listed in the article were currently held by one or more accounts managed by Global Investors in the United States (June 30, 2021): Delta Air Lines Inc., American Airlines Group Inc. , Ryanair Holdings PLC, easyJet PLC, Azul SA, Wizz Air Holdings PLC, Spirit Airlines Inc., Allegiant Travel Co., Southwest Airlines Co., Alaska Air Group Inc., Hawaiian Holdings Inc., United Airlines Holdings Inc.