Environmental, social and governance (ESG) factors taking hold in the banking sector would compel banks to divest from fossil fuels. This would lead to a world like that of the 1800s, the last time the world was “decarbonized”.
In the 1800s, we didn’t have coal or natural gas power plants, and we hadn’t discovered that crude oil could be turned into usable products. Life was hard and dirty, and most people never traveled 100 to 200 miles from their birthplace, and life expectancy was short.
Today there is a lost reality that the main use of crude oil is NOT for generating electricity, but for making derivatives and fuels that are the ingredients of everything economies and lifestyles need to exist and thrive. Energy realism demands that legislators, policymakers, and the media who exhibit widespread ignorance of the use of crude oil understand the staggering scale of the decarbonization movement.
the Efforts to end the use of crude oil could be the greatest threat to civilizationnot climate change, resulting in billions of deaths from disease, malnutrition and weather-related deaths.
In the global frenzy to reach the goal of “net zero” emissions, over the last 5 to 10 years, “ESG” – for Environmental Social Governance – has grown from an acronym that hardly anyone knew or cared about , to one has adopted the top priority of financial regulators, markets and institutions around the world. Today, ESG’s divestiture efforts apply to the 3 fossil fuels of coal, natural gas and crude oil.
The Net-Aero Banking Alliance, developed with the support of the United Nations, now includes seven of the largest and most influential banks in the United States, including BOA, Citi, JP Morgan Chase, Morgan Stanley, Goldman Sachs, Wells Fargo and Amalgamated. Bank.
Allowing banks to collude to reshape economies to conform to the preferences of banks and other financial institutions is a very dangerous precedent. The American people never voted to give the banks that kind of control over our country.
The domino effect of crude oil supply chain tinkering is supply shortages and price spikes for thousands of products that support the world’s economies. Petroleum-based products are the basis of the entire medical industry, all branches of the military, airports, electronics, communications, merchant ships, container ships and cruise liners , as well as asphalt for roads and fertilizer to help feed the world. Fossil fuel shortages encourage inflation as they severely damage energy and commodity infrastructure.
Climate alarmism seems to be inexhaustible and if history is any guide, ESGs admitting their mistakes and rushing to repair the damage are not high on the list of likely responses. So, by divesting crude oil infrastructure, we can expect supply shortages of thousands of products made from oil and crippling electricity prices and unreliable supplies to meet the demands of the society.
Read the rest of this article at CFACT.org.
Ron Stein is an engineer who, drawing on 25 years of project management and business development experience, launched PTS Advance in 1995. He is an author, engineer and energy expert who writes frequently on issues energy and savings.
Photo credit: courtesy CFACT.org