Norway wealth fund withdraws from oil sector, New CEO focuses on sustainable investing and orders asset managers to find investment opportunities in renewable infrastructure by Bloomberg, Jan 29, 2021, Business Day
Oslo — Norway’s sovereign wealth fund has sold its entire portfolio of companies focused on oil exploration and production, marking a major step away from fossil fuels for the investing giant.
The portfolio, worth about $6bn in 2019, was fully exited by the end of last year, Trond Grande, the fund’s deputy CEO, said by phone on Thursday. The move completes a years-long process to reduce the giant investor’s exposure to a sector that has defined Norway’s economy for the better part of half a century.
Grande spoke after the fund revealed an about $10bn loss on oil and gas holdings in 2020 that had been valued at more than $40bn at the start of the year. Overall, 2020 was one of the fund’s best years ever, with the total portfolio generating $123bn in returns, buoyed in particular by its holdings of tech stocks.
Norway’s wealth fund, the world’s biggest, started turning its back on oil and gas more than three years ago. The intention back then was to diversify away from an industry to which Norway’s economy was heavily exposed, with a view to addressing a key financial risk. But the fund’s new CEO, Nicolai Tangen, has also made sustainable investing an explicit focus of his strategy, and says all portfolio managers who work for the fund need to operate with that in mind.
Tangen has assigned about 10 asset managers to hunt down investment opportunities in renewable infrastructure. The fund, which the CEO says has yet to invest a single cent in the area, wants the portfolio to eventually reach about 1% of the total $1.3-trillion fund. Tangen has already admitted that might prove hard, with demand for renewable infrastructure assets driving up prices.
“We’re working relentlessly to get something under our belts here, and we hope that will happen this year,” he said in an interview. “We’re looking for wind and sun projects in Europe and America.”
Back in October, Tangen said “there’s a lot of competition” for the kind of projects the fund would be interested in buying.
“FixOvintiv!” Addicted to debt “Environmental Laggard.” “Failure of Governance, No Alignment or Accountability.” Shareholder Kimmeridge Energy Management Co. LLC: “Ovintiv: A Track Record of Value Destruction.” Sure sums up my experiences living invaded by frac’er Encana-Ovintiv
Law-violating, aquifer-frac’er bully Ovintiv/Encana/(Cenovus spawned after Ernst lawsuit filed): “New York-based investor considers Ovintiv…to be the poster child for all that ails the North American exploration and production sector…. The sector as a whole is rife with excessive compensation and a lack of accountability”
Ovintiv/Encana, Chevron, Exxon et al deeply deserve this! CNBC’s Jim Cramer: “I’m done with fossil fuels … they’re just done. We’re starting to see divestment all over the world. … It’s going to be a parade that says, ‘Look, these are tobacco and we’re not going to own them.’ … Younger people don’t want to own them. The dividends are great…but you can tell that the world’s turned on them. It’s actually happening really quickly.”
President European Investment Bank, Dr. Werner Hoyer: “Gas is over.” Oh, Oh! What’s gas frac’er Ovintiv/Encana gonna do? And, what’s Petro Pimp Jason Kenney gonna do? Fart bigger (after threatening USA with a tiny fart for wisely killing Keystone XL)?
Another huge win for global movement to stop flow of money to big polluters with approval of $4Billion Fossil Fuel divestment. NYC Mayor Bill de Blasio: “Fossil fuels are not only bad for our planet and our frontline communities, they are a bad investment”
Kids tried to sue Canada over climate inaction. They lost, Not for the courts to decide, Harper Gov’t appointed judge says. Kids plan to appeal. Bravo kids! I am grateful and in awe of you, but don’t expect “justice” to be served by our oil-soaked Supreme Court of Canada, or your Charter rights respected.
Norges Bank blacklists CNRL, Cenovus (split from Encana – now Ovinvtiv – after Ernst lawsuit filed), Suncor and Imperial Oil from Gov’t Pension Fund Global for unacceptable carbon emissions in Alberta’s tarsands. Updated with tar-pimping by Ms. Southern and Alex Pourbaix, CEO Cenovus.
AER Investigation Report (yes another one): CNRL’s Primrose fracking flow to surface mess and groundwater contamination “caused by excessive steam volumes, along with open conduits such as well bores, natural fractures and faults, and hydraulically induced fractures.”