Fossil Fuels Are Important But The Industry Needs To Do Better!

C-MACC Weekly Sustainability and Energy Transition Report

Fossil Fuels Are Important But The Industry Needs To Do Better!

• 1^st Topic of the Week: Fossil Fuels – The oil and gas industry will be critically important to energy transition but will lose credibility and support unless everything is done to behave as cleanly as possible. But don’t change the core business, investors like that even less.
• 2^nd Topic of the Week: Regulation in the US – While the Louisiana Class 6 Primacy ruling is a good thing, the US still impedes growth in many areas because of regulatory bureaucracy. By so doing, handing China the lead in terms of scale development and cost advantage.
• Otherwise – We look at single-use plastics, emissions declines in Germany, SAF, ammonia and methanol as fuels, and some investment challenges with wind stocks and EVs.

Exhibit 1: Very mixed performance from the integrated oil group in 2023

Source: Capital IQ and C-MACC Analysis, January 2024