'Big Oil' is becoming small!
Energy became the smallest sector with just 2.34% in the S&P index that looks at the fortunes of the biggest 500 companies on the stock market. Down by ~5x in 10 yrs. It's another piece of writing on the wall showing the age of fossil fuel is ending.
Energy became the smallest sector with just 2.34% in the S&P index that looks at the fortunes of the biggest 500 companies on the stock market. Down by ~5x in 10 yrs. It's another piece of writing on the wall showing the age of fossil fuel is ending.
My explanation (since 2007): as both the threat of climate change and the potential of renewables became clearer, people all over the world (researchers, entrepreneurs, politicians and prosumers) started to invest time and money in renewables instead of oil.
Also: we get richer.
Also: we get richer.
I think this is overall an extremely hopeful sign: collectively (maybe using the wisdom of crowds?) we are able to diagnose problems and develop+deploy solutions.
(Energy is actually one of the easier and more profitable problems to solve.)
(Energy is actually one of the easier and more profitable problems to solve.)
What I still wonder about:
1) How long will the mainstream press give room to people claiming that outdated technologies like 'clean coal' and combustion cars have a future?
2) How long will climate models include a massive revival of coal and oil at the end of the century?
1) How long will the mainstream press give room to people claiming that outdated technologies like 'clean coal' and combustion cars have a future?
2) How long will climate models include a massive revival of coal and oil at the end of the century?
3) When will journalists learn to plot these developments using a logarithmic scale so people learn to spot exponential developments in e.g. solar, wind, batteries and electric vehicles?
4) How long must we suffer simplistic economic equilibrium models with aggregated 'rational actors' and carbon pricing as a panacea?
We need realistic models that take human agency, positive feedback loops and pathways into account.
hindawi.com/journals/compl…
We need realistic models that take human agency, positive feedback loops and pathways into account.
hindawi.com/journals/compl…
5) When will most people understand that we would move to renewables even without climate change, because they are abundant, less problematic, and cheap?
There are already 400+ peer reviewed papers (ht @ChristianOnRE) describing how to get a 100% renewable energy system?
There are already 400+ peer reviewed papers (ht @ChristianOnRE) describing how to get a 100% renewable energy system?
Anyway: that Energy is now the smallest sector among the top 500 companies underscores that 'big oil' went from a dominant to a marginalized player. This also means they will be less and less able to sabotage the discussion on how to get to a clean energy future. Cheers!
Some political ramifications: promoting coal (the fortunes of which are dropping even faster) is looking increasingly dumb. It was even absent on the RNC this this year.
Can we agree that 'Trump digs coal' shows Trump doesn't have good ideas on energy?
Can we agree that 'Trump digs coal' shows Trump doesn't have good ideas on energy?
