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New York State’s pension has announced plans to drop the “riskiest” oil and gas stocks from its massive investment portfolio by 2025 and fully divest by 2040, making it the first U.S. state and the biggest pension fund in the world to make such a commitment.
The Huffington Post says tar sands/oil sands and fracking operations will be among the first to feel the bite of a divestment that focuses on the biggest carbon polluters first. “By early 2021, the state comptroller’s office will complete a review of companies that produce tar sands oil, a particularly dirty source coming mainly from Canada,” including ExxonMobil subsidiary Imperial Oil, the online news outlet states.
Tom Sanzillo, director of financial analysis at the Institute for Energy Economics and Financial Analysis (IEEFA) said, “For most of the last decade, the oil and gas sector has been at the bottom of the stock market. They have been firmly in last place for the last four years. The price of oil is down and any increases are likely to be meager. The buying and selling of assets to consolidate the industry is producing anemic prices, and the outlook is negative.”
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