Jan 24, 2020
The fossil fuel industry faces a dilemma similar to what confounded big tobacco a generation ago, according to economist and energy specialist Peter Sainsbury.
Speaking on the Contrarian Investor Podcast, Sainsbury says oil companies in particular are starting to be seen as “sin stocks,” with institutions divesting themselves on ethical grounds. But therein lies the opportunity. Much like tobacco companies reinvented themselves in the 1990s, energy companies can undergo a similar renaissance. Indeed the process of oil companies divesting harmful assets is already underway. This causes opportunities for investors. But first, headwinds can be expected.