Wall Street is falling out of love with natural gas

by Gerson Freitas Jr and Vanessa Dezem, Bloomberg


Highlights:

Investors are ditching natural gas and fossil fuels in order to invest in renewable energy such as solar and wind: 

    • Environmentalist push-back on dirty energy investments has put fossil fuel valuations at a tipping point 
    • For the first time in about a decade, local gas distributors indices are selling for less than electric utilities in relation to their projected earnings
    • With more cities adopting natural gas bans and countries looking to cut their emissions, the natural gas industry is bound to decline 

Natural gas is a fossil fuel, and its largest component is methane. Leaky pipelines and old gas distribution systems in communities all over California have led to a steep rise in methane emissions, which are 84 times more powerful than carbon emissions. For a climate-safe future, we will have to electrify all the systems in our buildings that are currently gas-powered (heating, water heating, and cooking), as well as phasing out gas-powered vehicles in favor of electric ones (and reducing the total number of vehicles).


Read More: https://www.bloomberg.com/news/articles/2020-03-03/wall-street-is-falling-out-of-love-with-a-once-coveted-fossil-fuel

Nina Turner
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