Energy Transition in Action: US Stock Market has Chosen the Green Path

(2 November 2020) Contrary to reasoned arguments of those who believe that the peak of oil demand is still far ahead even as the likes of bp expect we'll never again return to pre-COVID global oil demand levels, the US stock market has already chosen the green path. For the first time ever, the market value of a primary producer of renewable energy has surpassed that of oil majors. 

• On October 7, 2020, the market value of the world's largest producer of wind and solar energy—Nextera Energy—topped US oil majors Exxon Mobil and Chevron. One day before US election day, the market capitalisation of Nextera Energy amounted to $143 billion, compared to capitalization of $138 billion and $134 billion, respectively, for Exxon and Chevron.
• The data shows that for the past decade long-term investment in fossil fuels tends toward losses rather than profits. Every dollar invested in fossil fuels assets in the best case preserves its nominal value, while each dollar invested in renewables, such as Nextera, ten years ago today would yield almost six dollars.