Story of the Week: November 2022

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November 26, 2022 - ESG Investing Hurts the Poor and Empowers Tyrants
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November 26, 2022 - ESG Investing Hurts the Poor and Empowers Tyrants

ESG Investing Hurts the Poor and Empowers Tyrants by John Murante Appeared in the National Review on November 21, 2022 Gina's Thoughts The author describes the current situation in the US (and Canada) where "unelected investment managers and other financial institutions make decisions based on their own political agendas with the investments, savings, and pensions of millions of Americans (and Canadians)." What is that political agenda? Divestment with ESG and Net Zero as the justification. "This means an increasing reluctance (and sometimes outright refusal) to invest in fossil fuels, an industry which has improved the lives of so many around the world. Indeed, affordable and reliable energy is a critical factor in enabling an economy to grow, prosper, and help the poor. When the production of affordable energy in the US and investment in developing countries is prevented by divestment, it empowers countries like China." Energy security and energy poverty issues are looming over us right now and divestment will only exacerbate these problems.
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November 19, 2022 - The banking approach to net zero is just claptrap
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November 19, 2022 - The banking approach to net zero is just claptrap

The banking approach to net zero is just claptrap by Stuart Kirk Appeared in The Financial Times on November 11, 2022 Gina's Thoughts "From the 2015 Paris Agreement emerged the idea that investors must play their part in the energy transition. From there came the concept of financed emissions -- that providing funds to a belcher of carbon is basically akin to polluting itself, and hence capital should have net zero targets too." As a result, 400 asset managers and owners that are responsible for about $70tn have rushed to join the Net Zero Asset Managers Initiative and have promised to reduce financed emissions by some percentage by a particular date. Kirk, former Head of Responsible Investment at HSBC Asset Management, writes that these numbers and pledges are "hokum". The pledges do not save the planet, they are impossible to measure, they do not adhere to fiduciary duty and are pure virtue signalling.
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November 12, 2022 - Opinion: The energy transition is transitioning -- to energy security
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November 12, 2022 - Opinion: The energy transition is transitioning -- to energy security

Opinion: The energy transition is transitioning -- to energy security by Henry Geraedts Appeared in The Financial Post on November 10, 2022 Gina's Thoughts This week's author writes that "the current supply crisis has revealed surprising global demand for hydrocarbons." This should not come as a surprise to anyone. Oil and Gas still makes up 80% of the global energy mix and will continue to do so for the next 25 years. "The International Energy Agency projects a 50 per cent increase in global energy demand by 2050, while OPEC recently increased its global oil forecast for 2030 from 100 to 108 million barrels a day, with its market share expanding because of politically constrained Canadian and U.S. production." The author outlines all the reasons why hydrocarbons are front and centre on the world stage right now. Unless things change on the political and energy policy front, Canada and Canadians will lose out on the oil and gas global resurgence.
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November 5, 2022 - Cenovus CEO takes aim at oil and gas critics; says sector pays billions in taxes
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November 5, 2022 - Cenovus CEO takes aim at oil and gas critics; says sector pays billions in taxes

Cenovus CEO takes aim at oil and gas critics; says sector pays billions in taxes by Amanda Stephenson Appeared in The Canadian Press on November 2, 2022 Gina's Thoughts This week's article features another CEO standing up for the energy industry. A couple of weeks ago our Story of the Week featured an article about Chevron's CEO and his unapologetic promotion of oil and gas. This week, a Canadian CEO is standing up for the sector. Alex Pourbaix, CEO of Cenovus Energy "cited a recent analysis by investment firm Peters & Co. that predicts the oil and gas sector will return approximately $50 billion in the form of royalties and taxes to Canadian federal and provincial governments this year. "That's money that pays for health care, education, arts and culture and much more across this country," Pourbaix said." A thriving oil and gas sector is good for Canada and Canadians.
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