WexitAGoGo
LougheedDoesn'tLiveHereAnymoreVille
Why do the titans of the resource extraction bund who provide the programming for people like the good Mr. Kenney of the Albertalands need to fabricate faux enviro enemies for no good reason at all?
Well.
It would appear that it is because they, themselves, have come to understand that real end is nigh.
Mitchell Anderson, writing yesterday in the The Tyee, has a solid take on this POV:
...The market value of the U.S. energy sector is down almost nine per centthis year. The entire sector is now worth less than Apple. Exxon Mobil’s credit rating was just downgraded by Moody’s due to concerns of “substantial cash burn.” Fracking giant Chesapeake has shed 98 per cent of its stock value since 2008 and recently warned investors it may not be able to make scheduled payments on its crushing $10-billion debt.
Here in Canada, we hear a lot about the value of pipelines, but the economics of oil infrastructure elsewhere are collapsing. A recent reportpredicted the $160-billion global oil tanker fleet could lose 30 per cent of its value as the world shifts away from fossil fuels. “Shipowners and people that finance these ships could see their market is sinking,” said Stuart Nicoll, a director at Maritime Strategies that authored the study. “This just hasn’t had any attention.”
An ultra-deep water drilling platform worth $683 million in 2011 was just sold for scrap at two cents on the dollar after receiving no bids at auction, driven by diving investor interest in expensive offshore projects.
Even the Bank of Canada recently warned that some global oil reserves will become worthless in the future. “Maintaining the warming below 2.0 degrees Celsius implies that some of the existing fossil fuel reserves will become stranded assets,” wrote bank senior research director Miguel Molico in a recent report...
Gosh.
Does this mean that the massive debt transfers and asset bleeding will soon begin in earnest?
And when it does will this stratergy be backed with even greater government subsidies* for said bund?
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*Paid for by the draining of public pension funds, perhaps?
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Wednesday Morning Links
29 minutes ago