Re “big oil” being successful in alt energy. Learned a long time ago, the way to make money is “do stuff you know how to do”. Anyone else remember Exxon’s foray into office equipment around 1980? How well did that work out? SLB buying Fairchild semiconductor? List goes on and on.
Fantastic post, thank you for launching this Substack - it touches on topics very close to my own core areas of coverage. I'll be reading with interest!
One observation on this post: how would/should CEOs be compensated if their job is to wind down a company? Right now C-level remuneration is is starting to be tied to achievement of ESG metrics. If that's all thrown out the window in favour of managed decline, how does a board measure success?
Quick reply: I don't think one would "throw out" ESG metrics, which of course cover a broad spectrum of objectives, based on a company's growth/decline profile. I think your Q does highlight that "one size fits all" has never been and is unlikely to be the correct standard going forward in energy or I would guess any industry. Health, Safety, & Environment for example should be critically important to all energy companies irrespective of growth stage. Diversity/governance as well. Another example: I don't think a company should suddenly start flaring methane just because they are winding down an asset/company.
Re “big oil” being successful in alt energy. Learned a long time ago, the way to make money is “do stuff you know how to do”. Anyone else remember Exxon’s foray into office equipment around 1980? How well did that work out? SLB buying Fairchild semiconductor? List goes on and on.
100%!
great piece Arjun! I look forward to reading future ones.
thanks so much Paul! great to see some familiar faces here.
Thanks Arjun - always interesting to hear your thoughts!
Henry, awesome to see you here. Hope you are well...and would certainly welcome your perspectives in the Comments section.
Fantastic post, thank you for launching this Substack - it touches on topics very close to my own core areas of coverage. I'll be reading with interest!
Thank you very much Seb. I really appreciate your kind words and your encouragement.
One observation on this post: how would/should CEOs be compensated if their job is to wind down a company? Right now C-level remuneration is is starting to be tied to achievement of ESG metrics. If that's all thrown out the window in favour of managed decline, how does a board measure success?
Quick reply: I don't think one would "throw out" ESG metrics, which of course cover a broad spectrum of objectives, based on a company's growth/decline profile. I think your Q does highlight that "one size fits all" has never been and is unlikely to be the correct standard going forward in energy or I would guess any industry. Health, Safety, & Environment for example should be critically important to all energy companies irrespective of growth stage. Diversity/governance as well. Another example: I don't think a company should suddenly start flaring methane just because they are winding down an asset/company.
Absolutely, quite the opposite.
FYI, I featured this post at the end of my newsletter, Energy Flux. It’s paywalled but you can see it listed in the contents: https://www.energyflux.news/p/greedy-us-natural-gas-producers-face
Happy to send you a copy if you want to see it
Much obliged. Would love to see a copy if you don't mind...thanks so much.