According to CNN, The Rockefeller Foundation is swearing off “fossil fuels” in order to save the planet. The reality is that hydrocarbons are now so plentiful that they are not as profitable as they once were. One only has to look at a long term chart for oil to see the downward price movement. Spider Sector XLE peaked at around $79 in 2014 but is down to about $40 today. I would say that the virtue-signaling here is of necessity. The Rockefeller Foundation doubtless employs skilled investment professionals who would know that there are better sectors of the market to be in for the long term.
The Rockefeller Foundation, a 107-year-old philanthropy built by oil tycoon John D. Rockefeller, is breaking up with fossil fuels in an effort to save the planet.
Beyond pledging to dump its fossil fuel holdings, the $5 billion endowment is also promising not to make any new investments in the beleaguered sector. The moves make the Rockefeller Foundation the largest US foundation to embrace the rapidly growing divestment movement.
“Burning fossil fuels is not necessary to sustain our economy and economic growth over the long run — and it’s detrimental to our climate future,” Rajiv Shah, the president of the Rockefeller Foundation, told CNN Business in an exclusive interview.
This divestment is especially symbolic because the Rockefeller Foundation was founded by oil money. The endowment was largely built from the proceeds of Standard Oil, a company that at its peak controlled more than 90% of petroleum products in the United States. ExxonMobil (XOM) traces its roots to Standard Oil.
