When I ran into an article at Dink’s Finance about Charlie Rushton’s oil well investments, my stomach turned. While gas prices soar and politicians are at work to eliminate tax credits for electric vehicles, our country’s problems with making the right choices in energy investments are mounting up.
It’s hard to imagine a bunch of evil, old, white guys looking out for their own interests but that’s exactly what’s been going on for decades. The only question echoing in my mind is – why? Why do we keep investing in our demise versus our future prosperity? Why do we keep supporting companies that don’t take environmental responsibilities seriously? I think it comes down to consumers to take the first step. It’s the individual choice we make that promotes the type of investment our government supports.
You can imagine my reaction to Rushton’s support for oil well investment on individual level – that of disgust. I know we are looking out for ourselves and our families, trying to make any extra income, but at what cost?
Don’t Fall for Political Lies
We’ve become clueless about the state of our environment and the economic forces behind our politics. Almost half the country still doesn’t believe in global warming! We support politicians who care less about our future, rather looking out for their profits. The old “we shouldn’t pick winners or losers” argument is a complete fallacy when we let the free market decide which path our country will take in energy investment.
Right now, we have the capacity to power our entire country on wind energy, except for uneven [lack of] support by our politicians. If we were to give the same opportunities to green businesses as we have been to fossil-based industries for decades, we wouldn’t even be having this conversation.
Green Isn’t Going Away
As electric vehicle sales are expected to continue growing, so are investments into green companies. We can’t rely on oil forever. Do we really need to wait and see what happens to the price of oil as Asia’s demands grow dramatically? You may be thinking: Well, this sort of growth is exactly why you should invest in oil, but let me tell you why this way of thinking is wrong.
While trying to provide for your family now, you are actually creating a much larger problem for your kids and their offspring. If you really care about the place you live in, the people you love and the free market economy that can spur a whole new industry with the right support, then investing in oil is a terrible idea. We need to start making the right choices on consumer level, as individuals.
Invest in Green Companies and Technology
If you’re looking to invest, consider environment-friendly companies, and those that relieve us of dependence on fossil fuels. Don’t support companies that actively promote environmental waste by fattening their stock values through needless product manufacturing. If you are a supporter of clean environment, don’t support it just a little bit, dedicate yourself.
For long term investments consider organic foods. What better way to promote growth through sound long term investment than helping grow a company that’s environmentally responsible and didn’t lay off a single employee in the recent economical downfall?
Don’t get me wrong – I am not asking you to sacrifice your investment yields. I only ask that you consider alternatives with equal returns. Whether we realize it or not, our policies adjust based on consumer choice. Decisions we make today will impact the way public and private investments are made tomorrow.
I don’t believe in global warming, nor do I think government regulation is the solution even if global warming was true. I don’t want to get in a debate about global warming, because that’s not the point. Let’s focus on what we do agree on: making choices as consumers and investors that reflect our core beliefs. If people really think corporations are destroying the earth, then don’t support them.
What about ocean acidification of 30%, extreme weather events unlike ever seen, sea level rise this decade double of last century, waring of the oceans, shrinking ice sheets, disappearance of sea ice, extinction of ocean species? Do those not indicate global warming? I’m amazed that people can deny the ENTIRE scientific community on a whim of “I don’t believe in.” We’ll agree to disagree I suppose. Your statement on pursuing what’s in your core beliefs couldn’t be more sincere though – we have too many hypocrites who say one thing and do another. *cough* *ahemm, certain politicians* *cough*
I would tend to echo DC’s thoughts. In general, I don’t believe in global warming…BUT I do believe that we can do things to treat our environment and world better. I think regulation can be a good thing, but I think it has failed in this arena. I think we have to voice support with/without our dollars and that’s what big companies feel most. That said, I have invested in “green” companies in the past, as long as they fit into my portfolio and have a quality product.
Well put John, although my response to David is the same to your first two sentences
I’m just amazed sometimes at the blindness of some who are so up them self’s because they follow markets and agree with those that put money before life. How can anyone say they don’t believe in global warming?
Tell that to my old friend John who lives in St John’s Canada and has watched the icebergs melt in just half his lifetime. When government that is in bed with big business decides to pay virtually corrupt scientists to promote global warming as a myth, then you know something is amiss, Bush did that.
It’s simply too convenient to speak out on behalf of those that put money in front of life. What on earth gives these people the right to deny the obvious just because it effects their investments?
My blood is boiling here at the ignorance of money men. Global warming is real. You may not be feeling it directly from your condo in big business land, but take it from a northern European that it is happening.
When a politician pays scientists to discredit a theory which is obvious, be very afraid. You may be dealing in markets, but don’t let that justify your stupidity.
Preach it, Tom!
Ditto to that. Some people are so naive. There is a huge global warming issue and because people aren’t admitting it, we are creating more and more of a problem. We need to smarten up our act, and fast.
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Amen!
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The biggest irony will be that ultimately all green energy will be owned by the oil companies. Startups in green energy required a lot of capital and the failure rate is in the 90 percentile. They slug it out with each other in the early stages, those that survive will be bought out by the oil companies as they will need the funding.
Its happened in the pharmaceutical, biomedical, and computer industry.
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Is there any hope for anything in this world?
Veronica, You bring up some very valid and accurate points in your article. For anyone to completely deny that global warming does not exist would be wrong and as you highlight in responses there is naturally occurring evidence to support this.
I would like to mention a few other aspects. With regard to future power because of the current cost prohibitive nature of developing alt energies it is the likes of BP, Exxon, Conoco, Chevron etc that are leading the way in R&D of this sector. Why?… because they like you agree with the fact that oil is not going to be around for ever, unless you believe in the the scientific theory of Abiotic Oil which is a whole other discussion.
Unfortunately, it is the government that has failed to be proactive in the alt energy arena and when they have been they have been corrupt, Solyndra and Abound Solar Inc come to mind.
The plain truth is that while in roads are being made to CREATE an economically sustainable energy source we have to rely upon existing resources to power the globe. I would imagine there was the same outcry and support against whale blubber lighting our streets back in the 1700′s until Kerosene was created.
Lets also not forget the number of people the oil industry employs and the amount of money they inject into communities for infrastructure, education and business, both small and large.
I also believe that many people also miss the point about how necessary oil is in the day to day living and industrial use that it has. Powering our cars and households aside, In order to drive the wind turbines and manufacture the parts needed to build the solar generators etc etc. oil is needed for the fabrication and lubrication at minimum. Even electric cars use oil from where?, and the batteries to power the car are made from…natural materials that need to be mined.(think copper). Even T. Boon Pickens (oil tycoon and billionaire) is the biggest supporter of converting all haulage trucks to being LNG powered, but we still have to get the gas from somewhere.
As a former Chef, I buy organic when and where possible, from my local farmers market, and whole heartedly agree with that movement.
Ultimately, as you quite rightly point out it is about choice. However investing is not about choice, it is about numbers and risk. Currently the numbers are stacked in the favor of buying in to oil and gas than alt energy and there is far greater risk in alt energy than O&G right now.
In closing having read your article and then seeing that it is your choice to drive a Nissan Versa rather than an electric powered car, you can imagine my thoughts about practice and preaching…you guessed it ….
I don’t know where to begin. The idea that oil employs people and should be supported on that basis is just insane. Divert the energy you spend on investing in oil into wind and solar and you can have equally as many jobs. If that’s not a republican way of thinking (always looking out for oneself ) than I don’t know what is. How do you think wind turbines are manufactured, installed, maintained? Those are new jobs right there.
Solyndra is not a government-ran company. Sure they had investments made in them, but that doesn’t make it the government’s failure that the company misused the funds.
It has been proven that you can power at least 3/4 of our country on wind. If you want further reference to that research I’ll gladly provide it for you. Therefore when you tell me that oil is the only sustainable resource there is, I call a pile of H.S.
“In order to drive the wind turbines and manufacture the parts needed to build the solar generators etc etc. oil is needed for the fabrication and lubrication at minimum.” – lubrication yes (I can’t imagine that being a huge amount of oil requirement there) – but manufacturing? Seriously? We’re talking about a fraction of oil it takes to manufacture that stuff in comparison to what we use as a whole. I don’t buy your reasoning here at all.
There’s no doubt we need oil for plastics and lubrication and such, but that amount of production is nowhere near the total consumed amount of this non-sustainable energy source we use every day.
“Currently the numbers are stacked in the favor of buying in to oil and gas than alt energy and there is far greater risk in alt energy than O&G right now.” – it’s a chicken and egg problem. If you keep investing in oil then it’ll keep doing better and growing as a global disaster in the making. You have to start somewhere, and that’s not to say that clean energy investments don’t pay. There are choices out there, if we take the time to look and invest in those companies then we’re helping ourselves and the companies that take our invested money.
My choice to drive a Nissan Versa is due to the low cost of the vehicle. It’s one of the cheapest / per reliability factor vehicles out there and I hate the idea of spending a ton of money on something I use once a week to go to the farmer’s market. That being said, give me an equally affordable alternative in electric format and I’m sold. Why aren’t they more affordable yet? oh right.. because we keep investing in oil vs developing new technologies that will achieve economies of scale and make electric vehicles cheaper.
Don’t forget, the vehicle to run on water has already been invented. We’ve already designed vehicles to go over 100 MPG in the 1950′s, if that’s not suppressed technology by the oil companies, then I don’t know what is. Oil is the root of corruption in this world and to promote investments in oil is like promoting cancer.
Don’t take it personally, we all have to make ends meet and that’s why I promote payday loans. I understand the need to be able to provide for yourself and your family through whichever means necessary – and I also understand that’s most likely the cause of all evil decision making in this country (one looking out for himself).
If we are to start a new future where we don’t end up wiping ourselves out like a bunch of jackasses then we have to make choices on individual level. Although no government should control how investments are made in this country/ world it is their core duty to make such investments possible and curb the sprawl of corruption and greed.
Veronica here is the biggest irony: the oil companies will eventually all own the alternative energy companies. Alternative energy isn’t widespread because people aren’t willing to pay $10 per gallon in gas, and $500 a month to warm their homes. When the price of alternative energy come down, and oil rises to the point where other sources make sense then that will be an alternative. Investing in start ups are capital intensive, they drain all their resources to make a product that will won’t catch on due to the high cost. By the time it is viable, the cash rich oil companies will buy them out. In 20 years when alternative energy becomes commonplace, EXXON, Chevron and BP will own it. Its happened in technology as Microsoft and Cisco buy the start ups, and in medicine where the pharmaceutical companies buy the bio techs.
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In other words, let’s ride the gravy train instead of thinking about our future. I have no doubt start-ups are capital intensive, that’s why we have venture capitalists. Frankly, I can’t think of any green start up that’s actually public so I’m not sure what you had in mind here. What I am suggesting is that the govt. can help subsidize alternative energy the way it does oil RIGHT NOW. First steps are always tough, but without them we wouldn’t be where we are now. I also have no doubt you’re absolutely right that the rich, greedy oil companies will buy out innovators the way rich, greedy people have been doing for years. Just look at what Edison did to Tesla’s work, why invent it yourself when you can steal it from someone else. I’d rather give my money to those who innovate, not those who take advantage of innovators.