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From wind power to cow manure: oil traders seek new profit recipe


Added 02-15-20 08:03:02am EST - “The world's largest oil traders are pouring hundreds of millions of dollars...” - Reuters.com

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Posted By TheNewsCommenter: From Reuters.com: “From wind power to cow manure: oil traders seek new profit recipe”. Below is an excerpt from the article.

LONDON (Reuters) - The world’s largest oil traders are pouring hundreds of millions of dollars into climate-friendly projects - including wind farms, cow manure plants and blue hydrogen - as they seek to match the profits they make from trading oil.

The energy industry as a whole faces an existential threat from the shift to a lower carbon future and faces growing pressure from investors, governments, activists and financiers to find a sustainable business model.

For oil trading houses, the challenge is more acute, as their profit margins have already shrunk due to increased competition, regulatory scrutiny and growing industry transparency.

Trading firms such as Vitol and Trafigura have already put money into wind farms, hydrogen, solar, EV technology, biofuels and biomethane as potential replacements for oil, traditionally their big profit driver.

But like the big international oil companies they have yet to figure out what could become their new business model for an environmentally-friendly future.

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