The morning after the State of the Union address I overheard this discussion. An individual referenced a proclamation made by President Biden regarding fossil fuel usage to be net zero emissions by 2050, effectively phasing out oil. The comment, framed as a question, was; “If you were an executive of an oil company having to make decisions about capital investments today knowing that the future might make your product obsolete what would do?” My first thought was you’d have to assess the potential to be reality. There is one risk in investing and running a business that you can’t minimize; government risk. The ability of a government to, in the blink of an eye, change the landscape is forever looming. If you think the rhetoric is just hot air then I’d say move forward as normal. Why allow idle boast to drive decisions? If though, you fear the risk as legit, then you have got to take a completely different tact. What really is the potential for the risk to be legit? T
Humorous rants and thoughts.