It’s possible that eco-warriors are right in the middle of history. Future generations may be shocked at the consumerist economic system and their addiction to fossil fuels.
They may respond, “Surely not,” they might say. ‘They extracted resources from the earth’s core and burnt them in full knowledge the world was melting – really?’ It is necessary to establish a goal of net zero by 2050, even though it may seem too lofty. Narendra Modi (India’s Prime Minister) admitted this in Glasgow.
The question is, how do we get there? The world as we know it, regardless of whether climate change advocates like it or not is dependent on Big Oil. Not only is there the problem of switching to cleaner fuels, but also the implications for financial markets.
Future in our hands: What the energy crisis has shown in the UK is that the current strategy for moving to renewables is shambolic and failing
Trades between the US, Middle East and Middle East countries are some of the most important in finance. They account for trillions of dollars annually.
It will take many years to get bankers, traders, and investors away from Big Oil. There is just too much money. What the energy crisis has shown in the UK is that the current strategy for moving to renewables is shambolic and failing.
We are vulnerable because of the race to create wind and solar farms using state subsidies and stop oil and gas exploration. The timing of this transition could lead to disaster if it isn’t done correctly.
For fear of being called climate deniers, analysts and commentators hesitate to speak out. There is concern, however that our current energy source are being replaced by renewables that can be more controlled and reliable like wind or solar. According to one expert, it is “Reckless and absurd”. Once new fuels are cheap and available, a plan to reduce our dependency on them is necessary.
Instead of setting targets, real incentives are necessary. For the moment, oil and natural gas giants must continue to explore and extract. Shell and BP won’t be doing it if they don’t. Other, perhaps less responsible operators may. These activities can generate billions of dollars to fund the green energy revolution.
We must also see higher profits every year being used to improve our technology. All profits have to be channelled into green energy eventually. Initially profits could be channelled to top universities, the oil companies’ own R&D departments and to green energy start-ups. The fund managers must ensure that oil majors keep their word.
This approach could mean investors retain dividends and the global energy system keeps rolling until fossil fuels are redundant. This approach could also be a game-changer: it might allow scientists-focused universities to invest in start-ups and provide the spark of genius that will act as a catalyst.
Solar technology isn’t always shining. Fracking, on the other hand, is likely to be denied due to our geochemical fragility. It’s early days for hydrogen, and nuclear has been a problem.
Who knows – we might, just might, find a technology that saves us all.
It’s a small world
Many people wouldn’t like Antonio Horta Osorio clearing up at Credit Suisse after the fallout from Greensill or Archegos.
Antonio is currently in Zurich and Maria, Maria’s younger sister, is swanning around with David Cameron. Cameron was one of the Greensill co-conspirators. If the tech company Afiniti AI is able to float, they could work in tandem at Intimiti AI. They are both based in Bermuda.
The father-daughter WhatsApp conversation is fascinating!