RE:Exxon won't be investing heavily in wind and solarObscure1 wrote: In another interview, however, with CNBC, Wirth said the company will not be betting heavily on wind and solar power unlike other oil majors because it believes it would not create enough value for shareholders.
“The returns in wind and solar are actually being bid down, and we’ve concluded that management in our company can’t create value for shareholders by going into wind and solar,” Wirth told CNBC.
This is consistent with I posted earlier as to the challenge SU mgt faces to move into the renewable energy business. Right now with all the mania over renewables, the prices have been bid up and it is hard to find an investment where the math works.
That said, in an earlier post I also mentioned that there are a number of early stage companies out there where even for a company the size of SU they could make a significant contribution. I recall a poster on another Board mentioning such an investment that he was involved in.
If I was SU mgt I would have a few meetings with Government officials at NRC NSERC and the Innovation Department and find out who they are funding and then talk to the companies that look the most promising and get in on the ground floor with an equity position.