Money Talks, And Today It Says That Transition and Sustainability Are Unattractive

1^st Topic of the Week: As the European oil companies lament the multiple discounts that they see versus the US, they are just one of many groups focused on transition not feeling love and support from the financial markets. While 2022 was a year of hope, 2023 was a year of discovery, and for many this meant discovering that transition is not as easy or as cheap as had been thought.
2^nd Topic of the Week: Yet, despite the concerns above, we are overbuilding globally in some subsegments, and while much of the overbuilding may be in China, there are plenty of examples where it is not – lithium for example, but also batteries.
Otherwise: We look at the increasingly interesting and rapidly developing CCS focus from the US oil majors; this may prove to be a very profitable move. We also discuss some of the food grade recycling challenges, and why industry is lagging in signing PPAs.

Exhibit 1: US integrated oil companies command a much higher premium than many of their European peers.