WSJ Article on Caution of Investors Getting into O&G

[Cliff_N]

https://www.wsj.com/articles/oil-indust ... _permalink

From the article:

Fifteen of the 20 companies with the best returns in the S&P 500 index last year belonged to the oil industry, including Occidental Petroleum Corp., OXY -1.97%decrease; red down pointing triangle which had a 119% total shareholder return, according to Dow Jones data. After lagging behind every other sector from 2018 to 2020, energy has supplanted tech to lead the index for the past two years.

Yet many investors are still keeping their distance. Energy’s weighting within the S&P 500 has grown to about 4.9%, up from about as little as 2% during the pandemic lows. But that is well below the sector’s peak weighting of 16.2% in the second quarter of 2008, according to S&P Dow Jones Indices.

Some shareholders deserted U.S. shale after incurring losses in the industry’s debt-fueled oil boom in the 2010s, and fear a repeat. Others such as pension funds, endowments and faith-based organizations have sold some or all of their oil-and-gas holdings, citing concern about the industry’s greenhouse-gas emissions.

[Fraser921]

Raymond James down graded the gassers today and lowered their outlook for ng and asked for forgiveness