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

• Norwegian Wealth Fund Plays Climate Politics

• World Set To Spend More on Solar Than Oil This Year

• Tweet of the Day

Norwegian Wealth Fund Plays Climate Politics

Norway’s sovereign wealth fund will support climate resolutions at the Annual General Meetings (AGMs) of Chevron and Exxon.

The fund opposed similar resolutions at the AGMs of European Big Oil majors.

Double standards, saving face, or geopolitics?

Norway’s sovereign wealth fund is the biggest in the world, with some $1.3 trillion under management.

Where did that trillion-plus come from?

Oil and gas.

Yet the fund has been a vocal proponent of decarbonization in recent years, dumping some of its own oil and gas investments.

Some, but far from all.

After it was criticized for opposing climate activist resolutions at the meetings of BP, Shell, and TotalEnergies, it is trying to mend its ways with the American supermajors.

Apparently, because it believes Exxon and Chevron are not ambitious enough about their emissions.

Or, is this geopolitics at play?

There’s no making some people happy

Despite Norway’s stated support for climate resolutions, the author of those resolutions is not happy.

“The fund has a huge responsibility. This voting jeopardizes their credibility as stewards of the global economy. Basically, they are saying to Shell, BP, and Total: you don’t have to reduce your emissions this decade. We expect them to correct this oversight next year.”

The above is a statement by Mark van Baal, the founder of Follow This, the shareholder activist group.

Mark van Baal clearly feels he can tell the world’s largest sovereign wealth fund what to do.

And what the fund is doing suggests that he’s right to feel that way.

What’s next – activists drafting government policy?

Oh, wait, that’s already happening.

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World Set to Spend More on Solar Than Oil This Year

Investments in solar power will this year, for the first time, overtake investments in more oil production, the IEA has said.

Solar is seen drawing investments of $1 billion every day of this year, while the collective for coal, oil, and gas will be a bit over $1 trillion in total.

Transition FTW! Thanks to subsidies

The IEA’s head, Fatih Birol, listed three reasons for the expected surge in renewables investments, led by solar.

• First, he claimed, renewables’ costs are falling.

Actually, costs are rising, but who cares when you’re making investment assumptions.

• Second, governments see renewables as better for energy security.

Heh, sure, because it’s much better to depend on China for solar panels than on Russia for gas.

• Third, there are generous government subsidies for wind, solar, and EVs.

There’s nothing that says “free market” like subsidies, is there?

The problem at the end of the tunnel

Right now, according to Birol, investment in oil and gas is twice higher than it needs to be under a net-zero scenario.

Yet OPEC and industry executives have been warning of underinvestment in oil and gas.

Since real life stubbornly refuses to align with the net-zero scenario, chances are we’re in for a shortage.

How long until it makes itself felt is the million-dollar, or perhaps the trillion-dollar question.

And you can bet your boots Birol and his friends will then proceed to blame the oil industry for… underinvesting in more production.

Just like they did two years ago.

Around the Global Patch

🇧🇷 Brazil's largest FPSO sets course from Chinese yard.
🇳🇴 Success through perseverance: Norway's in April prevails.
🇮🇷I ran's bold response: ballistic missile test Amidst Israeli threat.

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