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Trillion-Dollar ESG Boom Is Punishing Old-School Energy Stocks

  • Exploration and production sector lags gains in the oil price
  • JPMorgan sees a catch-up trade, as green investing booms anew

The commodity rally may be the talk of Wall Street, but old-school energy producers are still lagging the oil price big time -- a tell-tale sign the era of green investing is in full swing. 

U.S. oil and gas companies are trading at less than half 2014 levels -- the last time West Texas Intermediate crude topped $80 a barrel -- while European energy equities are similarly underperforming. A key difference this time round: Trillions of investing dollars are now wedded to environmental, social, and governance rules that prohibit exposures to dirty energy.