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Goldman Analyst Calls Out ‘Deeply Disappointing’ Energy Bets

  • Upstream investments rose for the first time since 2015
  • Rise in renewables isn’t yet enough to fill energy-demand gap
BP Plc's Ruhr Oil Refinery as Germany Plans to Stop Russian Oil Imports By Year End
Photographer: Alex Kraus/Bloomberg
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The ESG industry has focused “too heavily” on blacklisting all fossil fuels, exacerbating an energy crisis that can’t be addressed without embracing natural gas, according to an analysis by a senior researcher at Goldman Sachs Group Inc.

Michele Della Vigna, the head of Natural Resources research for EMEA at Goldman in London, says energy strategies favored by many ESG investors may have contributed to a lack of practical alternatives to coal. By failing to keep up investments in natural gas, investors helped feed a void in energy markets that’s now being filled by the dirtiest fossil fuel.