Friday, April 15, 2016

Oil Divestment - Unintended Consequences?

I am impressed that the divestment movement is doing so well.

That said, I still stand by the worry I have which is that for every stockholder that divests there must be a stockholder that invests (a buyer and a seller) and if the movement is to divest then prices will drop.

When prices drop, the value of the oil companies drop. The investors get nervous and that starts a cycle.

The risk is that the ones who step in to buy are the ones who don’t care what the companies do - so the worst traits and behaviour are given more free rein - more shortcuts - more Gulf Of Mexico oil spills.

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