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Energy carriers are trending again. Why the ESG agenda won't kill the oil industry

The energy crisis, which is gaining momentum in Europe right now, was largely the result of the so-called "green transition" - the rejection of the mass burning of hydrocarbons to generate electricity.

After Joe Biden won the U.S. presidential election, green stocks surged. NextEraEnergy's stock rose more than 15% in two months and SolarEdge's has risen by 82.5% since last November.

The reality was harsher, as last winter was much colder. The end of summer and September were abnormally windless in the North Sea, where the lion's share of Britain's offshore wind farms are located. As a result, the cost of electricity soared almost seven times compared to August-September 2020.

On this basis, oil and gas companies, which now account for a significant share of their revenues from oil and gas, seem promising, but they are actively developing renewable energy.

It so happens that the European oil and gas giants were the first to secure a "green" vector for themselves. This means that it is worth betting on companies that have already begun to do something to reduce carbon emissions, even on paper.

Huge concerns are not able to change their business processes fundamentally in 2-3 years, but the declaration is already enough to make money on their shares.