“To make a switch from an international economy that depends on fossil fuels for 80 percent of its energy to something else is a really, very big job,” stated Daniel Yergin, the energy historian who has a forthcoming book, “The New Map,” on the shift now occurring in energy.”They are doing it due to the fact that management believes it is the right thing to do and likewise due to the fact that shareholders are badly pressing them,” said Michele Della Vigna, head of natural resources research at Goldman Sachs.Already, he stated, financial investments by the big oil companies in low-carbon energy have risen to as much as 15 percent of capital costs, on average, for 2020 and 2021 and around 50 percent if natural gas is included.Oswald Clint, an analyst at Bernstein, forecast that the large oil companies would expand their renewable-energy businesses like wind, solar and hydrogen by around 25 percent or more each year over the next decade.Shares in oil business, once stock market stalwarts, have actually been marked down by financiers in part due to the fact that of the danger that climate change concerns will erode need for their products.”It is very tricky for a financier to have confidence that they can pull this off,” Mr. Clint stated, referring to the oil industrys aspirations to change.But, he said, he expects funds to stream back into oil stocks as the new businesses gather momentum.

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