Oil companies struggle to secure financing, as banks feel climate pressure

But investment banks remain reluctant to issue long-term debt to oil companies, a trend that began even before the loss of demand that came with the COVID-19 pandemic, said Dean Foreman, chief economist at the trade group American Petroleum Institute.

Pitching financial institutions on putting money into oil and gas drilling projects has become an uphill battle, said Judd Walker, CEO of EnerVest, a privately held company in Houston. For now, interest rates for oil companies remain in line with what corporations at-large are being charged, Foreman said.

But among Republicans in fossil fuel producing states such as Texas, there is increasing concern that this new wave of climate-centric investing was likely to damage their homegrown industries. Last year, the Texas Legislature passed a law requiring banks to certify they were not discriminating against oil and gas companies because of environmental metrics, or else risk losing out on state contracts.

It’s the riskiest lending out there. When oil drops to $30/bbl, the collateral is worth virtually nothing.

According to Biden we can just shutdown all oil and gas and just buy a solar panel. Okay then.

Must be feeling the negative effects of Slow Joe's first-100-day-in-office war he waged against the petroleum industry?

Oil companies are the top investors in renewable energy.

Purposeful destruction of the US, brought to you by Democrats.

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