Some companies have a vested interest in the world getting worse. Oil companies top that list, although not for reasons you would expect.
As global investment moves away from fossil fuels and toward renewable energy (especially solar), oil companies are turning to plastic production as the cornerstone of their financial future. But as governments are cracking down on plastic garbage that clogs landfills and large segments of the Pacific Ocean, even this approach looks unsure.
“Oil companies are saying, no problem, we’ll invest in petrochemicals,” said Paul Bjacek to Bloomberg. “But petrochemicals, after the circular economy happens to the maximum extent, is likely to be a low-growth market.”
Local bans on plastic products and stronger recycling programs could be driving this change. Whatever the reason, the proof is in the profit sheets. Exxon mobile reported in August 2019 that its second-quarter profit fell from $3.95 billion the previous year to $3.13 billion; total revenue fell six percent.
Petrochemicals were supposed to be the hedge for oil companies to use against the rise of electric cars and increasing fuel efficiency in conventional cars. However, investment in new waste recovery methods looks to replace virgin plastic with recycled resins, replacing 20 percent in the short term, over 30 percent by 2030 and nearly 60 percent by 2050, resulting in a sharp drop in demand for petrochemicals.
SHIFTING FUNDS FROM OIL TO THE SUN
We've mentioned elsewhere on this site why investing in renewable energy is such a smart financial strategy. Private equity funds are in the middle of a historical shifting of funds from fossil fuel energy to wind, solar, and other renewable energy assets.
But investing in large-scale portfolios aren't the only way to get involved with the clean energy revolution. Many online companies are now offering funding platforms for renewable energy projects and cleantech companies.
We think the best company to invest in renewable energy is us, GoSun. You can now back it on StartEngine.
GoSun makes a variety of solar products including breakthrough solar ovens, which use vacuum insulation to bake, boil or fry a meal in only 20 minutes, using only sunlight. It has become the first consumer solar products manufacturer to break into mainstream markets centered around enjoying power, food and drink while outdoors. GoSun currently has relationships with major retailers including REI, ACE and Home Depot.