Good morning, this is the Oil Patch. Hot or cold, rain or shine, we're your source for oil and gas news.

Here's what the Oilman has for you today:

• UK Government's $40.2 Million Plan to Ditch Fossil Fuels: A Fool's Errand or a Genius Move?

• Oil Baron Strikes Out: Loses Billions in Enron, Madoff, and FTX Scams

• A Match Made in Davos? Anti-Oil Activists Left Looking Foolish

• Tweet of the Day

UK Government's $40.2 Million Plan to Ditch Fossil Fuels: A Fool's Errand or a Genius Move?

The UK government's decision to pour $40.2 million (£32.5 million) into reducing the reliance on fossil fuels in industries such as construction, mining, and quarrying is nothing short of foolish. It's like trying to put out a fire with a bucket of ice water. Sure, they're trying to help with the development of clean alternatives to oil products and cut emissions and energy costs, but at what cost?

These energy-intensive industries depend on natural gas and oil products for operations and production, and now they're going to have to suffer even more with the added burden of finding and implementing these so-called "clean alternatives."

Talk about a double whammy.

And for what? The UK's net-zero emissions target by 2050? Please.

This is just the government trying to look good on paper, while completely disregarding the real-life struggles of these industries.

Just look at the ceramics industry in the UK.

Soaring energy bills are threatening to collapse the whole industry.

Companies in the area around Stoke-on-Trent have had to close shop due to unbearable costs.

Let's just call it like it is - the UK government's decision to fund this initiative is a foolish one that will only lead to more problems for these industries in the long run.

Oil Baron Strikes Out: Loses Billions in Enron, Madoff, and FTX Scams

It's a case of "three strikes and you're out" for one unlucky oil baron.

Robert Belfer, an 87-year-old New York oil tycoon, has had a rough run of luck lately.

First, he lost billions in the collapse of Enron.

Then he invested tens of millions in Bernie Madoff's Ponzi scheme.

And now, he's taken a hit in the implosion of Sam Bankman-Fried's cryptocurrency exchange FTX.

According to court documents, Belfer Investment Partners and Lime Partners LLC, two firms linked to the Belfer family business, held shares in FTX and its US subsidiary, FTX US.

The two entities had a combined stake of $34.5 million as of early last year, when they participated in an equity fundraising round.

The Belfers have made several philanthropic donations to institutions like the Metropolitan Museum of Art, Harvard University, and Yeshiva University.

But when it comes to their investments, it seems like they're better off sticking to the art world.

It's worth noting that Bankman-Fried, the former mogul whose net worth was once valued at more than $26 billion, has been indicted by the federal government on fraud and money laundering charges.

He denies any wrongdoing. Of course he does.

The Belfer family joins a long list of wealthy individuals who have been burned by fraudulent schemes and scams.

It just goes to show that even the most successful people can fall victim to the allure of "too good to be true" investments.

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A Match Made in Davos? Anti-Oil Activists Left Looking Foolish

Looks like the anti-oil activists are getting a reality check at this year's World Economic Forum (WEF) meeting in Davos. Instead of oil and gas execs being the pariahs of the conference, they were sitting right alongside the renewable energy bosses, making the anti-oil advocates look foolish.

Greta Thunberg and her ilk are probably not too thrilled about this development, but some in the solar, wind, and hydro industry are starting to see the value in having the carbon crowd at the table.

Even OPEC Secretary General Haitham Al Ghais, who was also in Davos, has warned that renewables alone won't be able to meet the energy demand of economic growth.

But not everyone is on board with this new way of thinking. Activists and leaders like Greta Thunberg, International Energy Agency (IEA) chief Fatih Birol, and British opposition leader Keir Starmer, are objecting to the industry's new mantra that the energy crisis justifies new oil investments. They argue that these investments will only contribute to the climate crisis and that the focus should be on transitioning to net zero and investing in renewable energy.

Despite these objections, a consensus seems to be building within the energy industry that dropping oil and gas investments and leaving them in the ground is not the answer.

"Energy companies have to be part of the solution here," said Joseph McMonigle, Secretary General of the International Energy Forum. He believes that new technologies need the weight of big oil to be able to scale up solutions and that oil firms, with their cash reserves from a year of record high prices, have the means to fund more solar, wind, and hydrogen projects.

The Oilman's thinking, "How about just fund drilling more solid returns?"

It's clear that the energy transition is not a one-size-fits-all solution and that different players will have to come together to find a way forward.

But one thing's for sure, the energy game is changing and it's going to be interesting to see how it all plays out

Tweet of the Day

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