There is only talk in Texas about renewable energy, billionaire John Arnold, who made his fortune in bearish bets against natural gas… In particular, he played against the infamous Amaranth Advisors fund, which collapsed in 2006 after a $ 6.6 billion loss. Prior to that, John Arnold served as head of natural gas derivatives trading at Enron.
“There has been a seismic shift in the Houston energy industry recently,” writes the investor. “A year ago there was a lot of talk in defense of the oil and gas sector and condemnation of renewable energy sources. About 75% of the talk was about oil and gas and 25% about clean energy. Now it looks like this ratio has changed in a mirror image. “
Even those people who are not adherents of green energy see hints from financial markets who are no longer interested in increasing oil production, the expert notes. The amount of capital available to the oil and gas industry has plummeted, he said, while “every” private equity firm in Houston is raising money to invest in green energy.
“Markets reward those who work in a growing industry, that is, in the low-carbon energy sector, and punish those who are in cyclical decline,” writes the billionaire.
The investor also notes that this shift made him look with great optimism about the prospects for decarbonization, which requires large financial resources. According to him, large oil and gas companies have the necessary money, knowledge and experience, which are now beginning to apply in the field of low-carbon energy.