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The Charging Station - Issue No. 10
Reading Time: 2.5 minutes, ~700 words
PG&E settled (or so we thought), Saudi Aramco IPO’d, and ExxonMobil won a major climate case, other than that it was a slow week in the energy world. Let’s get to the rest of the news across the sector.
$40 Million - The proposed aid to New Mexico workers as the state moves forward with plans to shut down coal plants. (AP)
TCS Analysis: This case is worth watching as multiple states begin phasing out coal-fired generation. Will states provide a safety net, or will we get a shift in the economy that looks more like what has happened with manufacturing in the Midwest?
$13.5 Billion - PG&E reached a $13.5 billion settlement that will resolve all major claims related to devastating wildfires blamed on its outdated equipment and negligence. UPDATE: CA governor Newsom rejected this settlement as of Sunday morning. (CNBC)
TCS Analysis: The blame is on everyone and is being passed around. If Gov. Newsom continues to weigh in heavily on the restructuring plans of PG&E, it’ll become interesting to see what ultimately becomes of the utility and how that changes investors’ attitudes towards IOU’s given increased climate and regulatory risk.
Our Latest Post
Nothing of note this week, but new posts coming very soon.
Until then, enjoy this episode of Jason Jacobs’ My Climate Journey with Albert Wenger of VC firm Union Square Ventures.
Albert has an interesting take on climate, and not one I necessarily agree with. However, his thinking on macroeconomics and how it relates to climate change is amazingly clear. It’s hard to eloquently articulate such a complex problem through this lens and he does it well.
The Next Nuclear Plants Will Be Small and Safer - A new generation of nuclear reactors will start producing power soon, and could have an outsized impact on us hitting our climate goals. (Wired)
TCS Analysis: To meet climate goals, nuclear should play a large role in power generation. To date, nuclear has been met with NIMBY-ism, but the technology is evolving and must be taken seriously as a generation source to meet our baseline load demands.
Exxon Just Won Its Climate Case in NY, but It’s Not Out of the Woods Yet - ExxonMobil just beat the state of New York in a closely-watched climate fraud case. But other state and local governments suing the oil and natural gas company say they remain confident they can still prevail in their own legal fights. (Washington Post)
TCS Analysis: The NY case is slightly different from the ones being brought by other states in that it was focused on the intention to defraud investors which is harder to prove. The next set of cases facing big oil and gas are more akin to what big tobacco faced in 90’s and could have easier hurdles to clear. The ultimate benefit of these cases outside of political wins remains to be seen.
This week’s non-energy related read.
My sister recently got married which meant catching up with old high school classmates. One now works in the oil fields of West Texas and made this comment to me during our conversation, “I wish someone would have told me in high school that I could make $100K without going to college.”
That made this article from The Atlantic even more interesting as it takes a look at why Germany is better at preparing its workforce for trades and career paths that don’t include a 4-year college degree.
Why Germany is So Much Better at Training Its Workers (The Atlantic)
This newsletter is our side-hustle. We hope it equips you with data and insights on the energy sector to inform your decision-making process in the best way possible. If you have feedback, let us know!
Enjoy the rest of your weekend!
The Charging Station
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