Drillers Dying on the Vine, Big Bank Bucks, and More

A vital source of funding for the US oil sector is drying up as private investors retreat, prompting stricken operators to make “last gasp” efforts to boost production and cash flow to lure in buyers. The exodus mirrors shale’s experience in public markets, where even before last year’s crash investors had soured on an industry notorious for poor returns and weak environmental, social and governance performance.

JPMorgan Chase & Co. set a goal to finance $2.5 trillion in initiatives that combat climate change and advance sustainable development over the next 10 years, while Citigroup Inc.said it would back $1 trillion of similar efforts by 2030.

President Joe Biden is preparing to instruct federal agencies to take sweeping action to combat climate-related financial risks to government and the economy, including moves that could impose new regulations on businesses. In a draft executive order obtained by POLITICO, Biden reaches into all corners of the federal government with plans that would touch every sector of American industry, including banking and insurance, oil and gas, housing, agriculture, and federal contracting, purchasing and lending.

A new analysis shows that employment in the fossil fuel sector will drop 20 to 30 percent, regardless of the transition to renewable energy. Also, many of the oil industry jobs that were lost in 2020 due to decreased demand from the pandemic are not likely to return. The following are rebuttals against the argument that fossil fuel companies support high-quality jobs — which, together, make the idea of subsidies to help an ailing industry even less appealing.