"BP CEO Bernard Looney plans to dial back elements of the giant's high-profile push into renewable energy... he is disappointed in the returns from some of the renewable investments and plans to pursue a narrower green-energy strategy."
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"European oil companies face greater investor and government scrutiny over their carbon-reduction plans than do U.S. rivals, which have stuck more to their core oil-and-gas businesses"
US Oil majors historically trade at premium and has remained true even in face of transition.
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It's a legitimate issue - many O&G companies underwrite projects at mid-teens to 20%+ IRRs and renewables are MSD-HSD/low teens at best w/ leverage? Also, unclear where sources of competitive advantage can arise relative to O&G exploration or upstream/downstream expertise.
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If you're not getting credit for leaning into the transition faster while peers who are doing the opposite are and if you're structurally lowering returns/entering businesses without distinct competitive advantages, will your job survive the cycle? Tough predicament.
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