Small-cap, macro, value
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- Oil majors face serious challenges, for decades, resource nationalization has kept them out of many of the cheapest fields.
- They’re struggling to replace existing reserves and production with new reserves and production.
- Climate change could present them with a staggering $28 trillion bill.
They are amongst the biggest and most profitable companies in the world, the big oil, gas, and (to a lesser extent) coal companies. But whether they’re good longer-term bets for investors is very much in doubt. It isn’t that the world is running out of carbohydrates, peak-oil keeps ever receding into the future.
However, instead of peak-oil, a series of important threats has emerged on the horizon threatening some of the core businesses of these companies. In no particular order, these threats are: