FT News Briefing Can big oil escape the ‘valley of death’?
28 snips
Dec 11, 2024 Qatar's wealth fund is eyeing a massive $500 billion investment, focusing on technology and liquefied natural gas. Meanwhile, oil giants like BP and Shell are scaling back their clean energy ambitions to navigate financial pitfalls. The rise of private credit is capturing attention, especially as pension funds weigh its benefits against potential risks. CalPERS is also raising its stake in private credit, sparking debates about the implications for retiree payouts and the need for transparency in this booming financial arena.
AI Snips
Chapters
Transcript
Episode notes
QIA's Investment Strategy
- Qatar's sovereign wealth fund, QIA, anticipates a revenue surge from increased LNG production.
- QIA plans aggressive investments in tech, AI, and healthcare across the U.S., U.K., and Asia.
BP and Shell's Renewable Energy Dilemma
- BP and Shell, after investing billions in renewables, face pressure from both pro-fossil fuel and pro-climate investors.
- They struggle to balance the demands of these two investor groups, leading to a decline in share prices.
The Valley of Death
- Publicly listed oil and gas companies face a challenge transitioning to green energy.
- Existing shareholders may sell out as green investments increase, creating a "valley of death" before green investors buy in.