Allied Resource Partners Summary: Much Ado at COP26 Deciphering all the Heat Generated at the latest Climate Change Conference
We don’t have to go to Glasgow, Scotland to hear what’s being said at the Climate Change Conference. We listen to the news, read the papers, and if we want an information overload, we can go to the United Nations Climate Change Website (unfcc.int). But after doing all the above, we find mostly heat and not much light emerging. Too bad, because the world needs less heat in its sociopolitical climate.
We at Allied want to know which way the energy issue is blowing so we can compare where it’s leading to what we’re doing. So, we’ve searched for articles written by those who know more about than most about what’s coming out of the conference. Here is our bullet-point summary.
- All the major climate change contestants are tiptoeing with their words for fear they will cross some politically correct boundary. And who are the contestants? Governments, international corporations, and climate campaigners or environmental activists.
- As the conference unfolded, some of the activists sharply criticized the organization of the COP26 climate summit, describing U.N.-brokered talks as the most exclusionary they have ever known.
- Others criticized the activist pronouncements – for example those spoken by teenager Greta Thunberg – as being hyped and alarmist. Declaring that the world must act by 2030 or it will go beyond an irreversible tipping point is an exaggeration.
- The economic cost and inflationary consequences are real but are not as small as supporters or as great as adversaries claim. But they are significant, and people should expect to see prices for all goods and services rise.
- And just like Covid-19, the wealthier nations will suffer less than the poorer, no matter what trajectory climate change traces. The international community is beginning to acknowledge its ethical obligation to help.
- Governments are making pledges to reduce CO2 levels and switch to green/renewable energy by mandating standards, but the benchmarks and enforcement mechanisms are still to be determined/agreed to.
- But a consensus is emerging. Governments, industry, and the public are starting to realize that the world needs to move towards a sustainable, greener, renewable, and recyclable world. Private industry thinking and doing is ahead governments: profitable markets for electric vehicles, solar panel and power-generating windmill farms plus smart cities and new land and ocean farming technologies are sprouting up around the globe.
- Fossil fuels are not the enemy. They are a bridge to a sustainable future. Major oil companies are shifting investment out of O&G and into renewables while working to capture CO2 emissions.
- But progress and multi-partisan support will not be a smooth path to the future. It never has been nor ever will be easy. Few people like change.
So, let’s bring all the above back to Allied Resource Partners. Our takeaway is the same as stated in some of our previous articles and posts. No one knows what will hold longer-term. But please note there’s money to be made going forward for Allied Resource Partners. And we are confident that all the above jibes with “staying the course” on our current strategy. We continue acquiring attractive leases while drilling and operating low-risk and high-return wells.
We want you to be well informed, because the more you know about O&G, the more you’ll understand why we can say that Allied is leading the way by treating smart, accredited O&G investors the way today’s business climate demands. Please contact us if you would like to know more about our latest Joint Venture Drilling Projects or discuss further any of the items we touched on above.