Holding Oil Majors? Time To Develop A Long Term Strategy

Not long ago, we argued that oil companies would not invest in alternative energy or electric power because those opportunities were not big enough and the potential return was not great enough compared to what the oil market offered. And they didn’t. But we were looking at the wrong measure for profitability.

And so were they. What counts is how an investment builds value for the owners of the business, not what shows on the books. We’ll get to that next.   We also argued that over the past two decades, the oil and gas industry’s…