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  • 🛢️ Your company is anti-oil & gas? Not in Texas...

🛢️ Your company is anti-oil & gas? Not in Texas...

plus Goldman Sachs drops 2023 oil price forecast

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

  • Goldman Sachs Flip Flops on Oil Forecast

  • Texas' List of Anti-Oil & Gas Companies

  • Tweet of the Day

Goldman Sachs Flip Flops on Oil Forecast

A couple weeks ago Goldman Sachs was calling for $107/bbl oil by year's end.

Now they're forecasting $94/bbl Brent for the year.

So what's changed?

Chinese demand is still skyrocketing

The Chinese are done with COVID-mania and they are traveling in full force.

This seems bullish as does the news that Q3 2023 will see a tightening of crude supplies while international demand increases.

Last week in a note to Bloomberg, Goldman noted “Oil prices have plunged despite the China demand boom..."

Despite the demand boom and tightening oil supplies...

"Oil prices have plunged," Bloomberg went on to note, "given banking stress, recession fears, and an exodus of investor flows.”

Banking stresses like SVB, Silvergate, Signature failures. Add to those the Credit Suisse debacle and First Republic Bank shares crashing.

Thus, Goldman Sachs has lowered their forecasts for Brent.

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Texas' List of Anti-Oil & Gas Companies

Texas recently established a list of companies that publicly hold and push anti-oil & gas policies.

There's a new inductee to that list: HSBC Holdings.

HSBC, along with BlackRock and Credit Suisse & UBS Group, is one of many financial institutions focusing on environmental, social, governance schemes instead of focusing on their client's financial success.

How did Europe's largest bank start meddling in social issues?

It began with – you guessed it – a professor at Columbia University.

Prof. Adolf Berle wrote, "“[Managers] have placed the community in a position to demand that the modern corporation serve not alone the owners or [management] but all society…"

Echoing Berle in his 2020 Letter to CEOs, BlackRock's Larry Fink said, "Every government, company, and shareholder must confront climate change."

Which is just what HSBC was doing: confronting climate change.

But what happens when the manager's ideas clash with the owners' interests?

Generally, the owner fires the manager.

HSBC might be Europe's largest bank, but they won't be doing any business with the great state of Texas.

Mess with Texas? HSBC – you're fired.

Mess with Texas? HSBC – you're fired.

“HSBC’s new energy policy is a prime example of a broader movement in the financial sector to push a social agenda and prioritize political goals over the economic health of their clients," stated Texas Comptroller Glenn Hegar.

Around the Digital Patch

🚢 New LNG terminals could double U.S. exports.👷 $100K O&G entry level jobs in Alberta.👨‍🏫 University Professors should oppose divestment of oil & gas interests.

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