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Arvind Sanger - The Sustainable Energy Transition

The Business Brew

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The ESG Issue and the Oil Patch

A lot of energy companies, US shale focus companies went bankrupt in 2015 2016 and oil went to sub $30 a barrel. After the 2020 crash, it became pretty clear even to the boards of the energy companies that there was no appetite amongst investors to fund growth. The high yield markets shut the door window. The equity investor shut the window. And then the boards said, fine, our incentive now after 2020 is going to be based on cash return to share,. Not just capital discipline, but also returning surplus cash to shareholders through dividends based on cash. So it was a confluence of everything coming together that really has created this perfect moment in the energy business.

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