SMAWF - ESG Investing Set To Exacerbate Already Unfolding Global Energy Crisis

• The environmentally-conscious investment trend is starting to have a meaningful impact on publicly traded oil & gas producers and their investment decisions, contributing to a global energy shortfall.
• The ESG trend may succeed in trimming hydrocarbon supplies, but the energy industry may end up benefiting nonetheless as oil, gas, and coal prices continue to surge.
• The longer-term outlook for hydrocarbon producers as well as uranium miners is bullish because demand is not adjusting to the supply shortfalls unless we will see price-induced demand destruction.
• The recent energy crisis that started from a significant shortfall in wind & hydropower in Europe is proving that renewables are not yet ready to dominate the global energy supply, therefore there is no path forward for painless hydrocarbon demand destruction.
• Even though ESG trends tend to suppress energy stocks relative to the price of hydrocarbons, these companies are still set to do well because the price of energy is set to soar, due to supply shortfalls, which should improve financial results.

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