Quebec pension giant Caisse to exit remaining oil-producing assets, setting up $10-billion green fund by Jeffrey Jones
Appeared in The Globe and Mail on September 28, 2021
Gina's Thoughts
"Canada's second-largest pension fund will jettison its oil-production holdings, which make up 1 per cent ($4 Billion) of its portfolio, by the end of next year to keep it from contributing to growth in global supplies." What the Caisse failed to measure in this divestment decision is demand. Demand for oil and gas has risen over the past "decade of divestment" and is expected to keep rising. If the oil and gas that society wants and needs is not provided by Canadian listed private-sector companies with their exemplary environmental standards, it will come from state-owned suppliers from such countries as Saudi Arabia, The Gulf States, Russia and Iran. You can be sure these suppliers won't maintain the high standards employed here in Canada. The result will be a dirtier environment, not a cleaner one. The Caisse should be investing in the growth of Canadian hydrocarbon supplies, not divesting from them.