w Inaccurate Mainstream LCOE Estimates are Creating a Trillion-Dollar Bubble in Conventional Energy Assets

[RandomGuy]

Link to study in article.
Data provided appears to support their conclusions. still reading.

Some of the foundational assumptions that go into the complex valuation calculations for fossil fuel power seem to be erroneous.

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Fossil Fuels Are Wildly More Expensive Than Previously Thought, Study Says
Overinflated fossil fuel investments might be a ‘worthless’ bubble waiting to trigger the next crash, while renewables seem more appealing than ever.

A new study finds that conventional electric power plants powered by fossil fuels and hydro are massively overvalued by the world’s leading analyst organizations. The report says they are overvalued to such a degree that the trillions of dollars of investment in these industries could amount to a “bubble” similar to the subprime mortgage housing bubble whose collapse triggered the 2008 financial crash.



https://www.vice.com/en/article/qjpq...ght-study-says

[Winehole23]

Link to study in article.
Data provided appears to support their conclusions. still reading.

Some of the foundational assumptions that go into the complex valuation calculations for fossil fuel power seem to be erroneous.

------------------------------------------------------------------------


Fossil Fuels Are Wildly More Expensive Than Previously Thought, Study Says
Overinflated fossil fuel investments might be a ‘worthless’ bubble waiting to trigger the next crash, while renewables seem more appealing than ever.

A new study finds that conventional electric power plants powered by fossil fuels and hydro are massively overvalued by the world’s leading analyst organizations. The report says they are overvalued to such a degree that the trillions of dollars of investment in these industries could amount to a “bubble” similar to the subprime mortgage housing bubble whose collapse triggered the 2008 financial crash.



https://www.vice.com/en/article/qjpq...ght-study-says

Interesting piece, thanks for posting.

RethinkX has made surprisingly accurate forecasts on a number of counts in previous studies which lend credence to its new conclusions. From creating an investment portfolio that returned more than 2,500 percent over 15 years, to correctly anticipating the declining costs of solar panels and electric cars, the think tank’s researchers have been ahead of the curve across a range of technology disruptions. Its founders, Seba and technology investor James Arbib, are regularly sought out for their insights by investors with trillions in assets under management, including BlackRock, Goldman Sachs and JP Morgan.


Their latest report also dovetails with warnings that have come from other sources. Last year, Motherboard reported on the conclusions of an internal study commissioned by the Geological Survey of Finland which warned of how rapidly mounting oil production costs combined with surging debt levels across the industry would shatter the economic viability of the entire global oil market within just a few years.