C-MACC Weekly “CRETER” (Climate etc.)
Oil and Gas Have The Cash – How Much Goes To Energy Transition?
- Redirecting oil and gas profits to energy transition-led investments makes sense in concept – creating a high return on investment backdrop would open floodgates.
- Taxation is not the answer. The capital allocation process should be efficient, and governments are bad at this. The Middle East is moving – so should the US.
- Chemical companies are looking at direct investment in power generation to reach decarbonization goals – the same logic should apply to cash-rich oil and gas.
- Recycling is becoming more of a focus as the economics look less attractive – we see consolidation and more acceptance of chemical recycling as likely outcomes.
- While we see plenty of R&D in Hydrogen in the West and a desire to not let China dominate hydrogen equipment etc., IP has only slowed China in other areas.
See PDF below for all charts, tables and diagrams