I find this completely illogical by their part. For me it would be obvious that having something limited that ears me money now will end in time. Thus I would be investing in something that will earn me money before the limited one runs out. But that’s my simple way of thinking. Most probably they’re some unknown factors that oil companies have to follow, that isn’t public. But interestingly nowadays even oil rich countries are heavily investing in green technologies, which is a great surprise.
Right now, renewable energy is still young. While their efficiencies and infrastructure continue to improve, oil companies are hesitant to invest in the technology because the size and scale of project and the uncertainty of payout. They are, according to some analysts, just waiting for promising and certain technology and will likely invest more in the future.
Oil companies are not really in the business of producing oil, they are in the business of making money. Right now, oil production is a cost-effective way of making money. When that is no longer the case, oil companies will be very well positioned (because they have plenty of money) to do something else, probably energy related.
This has already happened to some degree – called “exploring on Wall Street” vs. on-the-ground exploration for oil. It can be vastly more efficient for a company to buy another company, with its already discovered assets, than to go to the huge effort and expense of looking in difficult places for elusive, not-that-large reservoirs of undiscovered oil.
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