Why You Should Short Public Oil Companies

U.S. coal companies have lost about 75 percent of their market value during the bull market that began in 2009. Oil and gas companies, which account for 60 percent of U.S. carbon emissions, and about 84 percent of fossil fuel market cap, have fared much better. But risks abound.

Publicly traded oil and gas companies have access to only 10 percent of the world’s oil reserves. As it happens, their reserves are often located in deep water far from shore or in the complex geology of tar sands, making them among the most difficult -- and expensive -- to extract. Readily accessible, inexpensive crude reserves in places like Russia and the Persian Gulf are set aside by governments for their own national oil companies.