Did Goldman Sachs Just Ask ESG Investors To Pass Me The Oil and Gas?! Increible!

Another Curveball?!

Hola everyone! Leo Messi here your friendly neighborhood footballer and occasional financial analyst… okay maybe not the last part but hey a guy can learn right? So I'm reading this article and Goldman Sachs is saying that ESG investors – you know the ones who want to save the planet while making money – should start investing in oil and gas companies. I almost choked on my mate! It's like telling me to swap my left foot for a golf club – unthinkable! But let's dribble through this a bit. As they say at Camp Nou 'Tots units fem força' – Together we are stronger. But are we stronger with oil rigs?

Peak Oil and Peak Confusion

Apparently Goldman Sachs thinks the energy transition is going to take longer than a Barcelona rebuild after Neymar left. They're talking about peak oil demand in the mid 2030s and peak gas demand in the 2050s! ¡Madre mía! They're saying we need new oil and gas development well into the 2040s. It's like saying I need to practice penalties more… okay maybe that's a sore spot. But seriously the International Energy Agency thinks fossil fuel demand will peak by the end of the decade. Who do you believe? It's like choosing between a perfectly weighted through ball and… well anything else.

Big Oil: The Unlikely Green Heroes?

Here's where it gets really interesting. Goldman Sachs claims oil and gas companies are some of the biggest investors in low carbon energy. They're like the unexpected hero in a movie – you know the guy who starts off as the villain but ends up saving the day. They need the cash to switch to better energy alternatives. I do like how they put it affordable energy for the poor. They even need the balance sheet to do this if the money is there then I'm game. But still it feels a bit like asking Diego Maradona to endorse a fitness program – a little contradictory no?

Not Everyone's Buying It Eh?

Of course not everyone is sipping the Kool Aid – or should I say crude oil? Ida Kassa Johannesen from Saxo Bank thinks it's "a bit extreme." She's got a point. We're seeing record breaking temperatures melting glaciers and rising sea levels. It’s hard to score goals when the pitch is underwater! Why would we want more fossil fuels? It's like asking me to score with my right foot – possible but not ideal.

A Little Loosening Around the Edges?

Allen Good from Morningstar thinks there might be some "loosening around the edges" if oil companies invest heavily in renewables. So maybe if a company like TotalEnergies invests a ton in green energy they could sneak into an ESG portfolio. But someone like Exxon or Chevron? ¡Imposible! It's like trying to get Sergio Ramos to play nice – a beautiful thought but probably not happening.

So What's a Poor Footballer to Think?

Look I'm no expert but it sounds like everyone's trying to figure out the best way to tackle climate change. Maybe there's a way for oil and gas companies to be part of the solution but it's going to take a lot of convincing. And a lot of green energy investments. Until then I'll stick to scoring goals and hoping we can all find a way to save the planet. Because as we say in Rosario 'La pelota siempre al 10' – The ball always to number 10. And right now the planet needs our best play.