Oil must face its future as a declining industry

Oil must face its future as a declining industry:

"The energy transition is going to be expensive. The International Energy Agency estimates that by 2050 the global energy system will require an additional $29tn of capital to be invested — over and above the growth capital required to meet the growing demand for energy globally. Much of that investment will have to come from capital markets. Providing that capital without policy certainty is going to be a challenge. Whilst the 2015 climate agreement in Paris offers some help, we still lack clear policy signals on what the long term price for carbon is going to be, and when there will be an effective mechanism to implement it. Without this certainty, pricing carbon risks and opportunities is going to remain highly complex. In the context of this uncertainty, one of the most challenging sectors for investors is oil and gas. It is especially important for investors here in the UK as the sector makes up over 15 per cent of the FTSE 100."



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