Good morning, here's what the Oilman has for you today:

• Transitioners Take Aim at Carbon Capture

• Investors Want Big Oil in ESG Funds

• Upcoming Oil and Gas Events

• Tweet of the Day

Transitioners Take Aim at Carbon Capture

The IEA has slammed the oil industry for investing in carbon capture.

It has apparently dawned on the IEA that carbon capture helps keep producing oil and gas in a transition world.

Obviously, this can’t be allowed to happen.

So, what about those IRA billions for CCS?

The Inflation Reduction Act, the most ambitious climate deal ever in this country, has a sum earmarked for carbon capture and storage.

The energy industry has been happy to get some of that sum.

As have startups claiming they can suck CO2 straight out of the air.

And here comes the IEA to rain on their parade, saying the industry could never suck out as much CO2 as necessary for the transition targets.

Fun fact: the IEA report coincided with another one, also targeting carbon capture as “a dangerous delusion.”

It might not be about emissions at all

If the ultimate aim of the transition is to lower emissions of CO2, then carbon capture tech should be right up there with wind and solar.

Instead, it has only drawn limited attention.

High cost is one reason, but green hydrogen is also expensive, and it’s been getting a lot more attention.

So maybe there’s another reason some people don’t like carbon capture.

Maybe the reason is they want to see the oil and gas industry dead, with or without emission reductions.

Clearly, people won’t stop using oil and gas voluntarily.

So, the only way to clear the space for their rivals is to squeeze the industry.

That sure is going to work just fine.

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Investors Want Big Oil in ESG Funds

You read that right. Investors want oil stocks in ESG funds.

That’s according to a senior exec from Deutsche Bank.

Apparently, Big Oil stocks are a safer way to invest in the energy transition.

A paradox? Not really.

It sounds paradoxical, but it’s not.

Big Oil has the money (from oil and gas) to invest in low-carbon stuff.

This makes it relatively secure from risks like higher interest rates.

We saw this recently when wind and solar socks sank on rate hikes.

Big Oil stocks didn’t, to put it mildly.

Of course, investors would want in.

"When we think about clean energy, these are business models which are quite new and sensitive to interest rates," Deutsche’s Markus Mueller said.

He’s the guy in charge of the bank’s ESG investing, by the way, so he probably knows what he’s talking about.

"Investors are looking for traditional [energy] companies that have capex in renewables... They prefer the transition than to exclusions."

Yep, he knows what he’s talking about.

The quiet part still remains unsaid

 Investors want oil and gas, regardless of how you package them.

Sure, some want in for the low-carbon projects.

But most sure want in because of the fat profits—that come from oil and gas.

Some of those profits go into wind, solar, and similar to create a feel-good vibe.

But the rest is going to shareholders.

And more oil and gas production, of course.

That’s what happens when your business model is not built on subsidies.

Upcoming Oil & Gas Events

• November 28: TIPRO/IPAA Leaders in Industry Luncheon, Petroleum Club of Houston, Houston, TX

• November 28: NDPC Christmas Gala, Lumen Vitae University Center, Bismarck, N.D.

• November 28-29: UTA Oil and Gas Conference, Hilton Americas, Houston, TX

• November 29: DUG Appalachia Conference & Exhibition, David L. Lawrence Convention Center, Pittsburgh, PA

• November 30: IPAA Texas Hold’Em Tournament, The Post Oak Hotel, Houston, TX

• December 6: Petroleum Alliance Of Oklahoma Wildcatters Wednesday Luncheon, Oklahoma City, OK

• December 6: 15th Annual PAW Wildlife & Reclamation Conference, Casper, WY

• December 6: PIOGA Mix, Mingle & Jingle Holiday Party, Wexford, PA

• December 15: 23rd Annual KOGA Christmas Party, Bodley Bullock House, Lexington, KY

Around the Global Patch

🇮🇩 Indonesia's Green Revolution: A $20 billion renewable energy leap.
🇨🇳 The unraveling dragon: China's shift in global economic influence.
🇧🇷 Brazil's ambitious oil expansion sparks environmental debate.

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