Jim Cramer: “I’m Done With Fossil Fuels. They’re Done.”
“I’m done with fossil fuels … they’re just done. We’re starting to see divestment all over the world. You’re seeing divestiture by a lot of different funds. It’s going to be a parade. It’s going to be a parade that says, ’Look, these are tobacco and we’re not going to own them.”
Mad Money host Jim Cramer told CNBC on Friday that he’s “done” with fossil fuel stocks because he believes that young investors’ reluctance to invest in expanded oil and gas production has initiated “the death knell phase” of the industry, in what environmentalists cheered as a major victory for the divestment movement.
“I’m done with fossil fuels. They’re done,” @MadMoneyOnCNBC‘s @JimCramer says after oil giants Exxon Mobil and Chevron reported Q4 earnings this morning. “We’re in the death knell phase.” https://t.co/rdcmoeRGMB pic.twitter.com/yl8iP7hpMi
— CNBC (@CNBC) January 31, 2020
“I’m done with fossil fuels … they’re just done. We’re starting to see divestment all over the world,” Cramer said. “You’re seeing divestiture by a lot of different funds. It’s going to be a parade. It’s going to be a parade that says, ’Look, these are tobacco and we’re not going to own them.”
“Look at BP; it’s a solid yield, very good. Look at Chevron; they’re buying back $5 billion worth of stock. Nobody cares,” Cramer said on Friday. “This has to do with new kinds of money managers who frankly just want to appease younger people.”
Cramer’s comments come weeks after Blackrock CEO Larry Fink, the head of the world’s largest asset manager, announced that his firm will now make climate change central to its investment decisions.
“Climate change has become a defining factor in companies’ long-term prospects … But awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance.”
“Climate change is almost invariably the top issue that clients around the world raise with BlackRock. From Europe to Australia, South America to China, Florida to Oregon, investors are asking how they should modify their portfolios,” Fink continued. “And because capital markets pull future risk forward, we will see changes in capital allocation more quickly than we see changes to the climate itself.”
“In the near future — and sooner than most anticipate — there will be a significant reallocation of capital,” he added.
As Citizen Truth previously wrote, the European Investment Bank, one of the world’s most powerful financial institutions, announced in July that it would divest from all fossil fuel projects by the end of 2020. In May, Sen. Jeff Merkley introduced a proposal to allow federal workers to divest their retirement funds from fossil fuels, and the United Kingdom’s Parliament is considering a similar decision.
Prominent environmentalists Naomi Klein and Bill McKibben celebrated Cramer’s assessment as the achievement of grassroots fossil fuel divestment activists, who claim to have now secured more than $8 trillion in divestment commitments from over 1,000 philanthropies, pension funds, universities and other institutions.
Watch this entire thing: it doesn’t matter how well oil stocks are doing, the next generation sees them as toxic and doesn’t want them. Everyone involved in the fossil fuel divestment movement, and that is thousands upon thousands of mostly young people, made this happen. Wow. https://t.co/cDaD9VjBD2
— Naomi Klein (@NaomiAKlein) January 31, 2020
Yow! Why does Jim Cramer think oil stocks are “done?” Because “we’re starting to see divestment all over the world. Big pension funds are saying ‘listen, we’re just not going to own them anymore…It’s the biggest thing holding them back.'”
Thanks to all who fight so hard https://t.co/k6cXyjUvDI
— Bill McKibben (@billmckibben) January 31, 2020
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