Climate Changed
Norway Deals a Blow to an Oil Industry That's Quickly Losing Friends
- Sovereign fund moves to sell $7.5 billion of oil, gas stocks
- Symbolic divestment may signal more disruption lies ahead
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The decision of the world’s largest sovereign wealth fund to reduce holdings in oil stocks wasn’t as far-reaching as the industry feared, but dealt a symbolic blow to fossil fuels that will reverberate for energy companies and their investors.
While the divestment by Norway’s $1 trillion fund doesn’t include Big Oil, instead rooting out $7.5 billion of companies that focus purely on exploration and extraction, the impact of the announcement rippled through the sector. Shares of all oil companies initially plunged on the news, suggesting the move sets the industry up for greater disruption.