If you follow the European press and listen to politicians, you might think the oil and gas sector is off limits and no bank or financial institution would sign on to new loans. There are government agencies whose job it is to tabulate what is going on in every economic sector. In the oil and gas sector, the agency is called the International Energy Agency.
In an article from Reuters, the International Energy Agency reported in 2021, the top 25 European banks provided $55 billion to continue and expand oil and gas production. That total is a fall from $106 billion lent in 2020 and $83 billion in 2019, but above the 2018 and 2017 with numbers of $49 billion and $50 billion respectively.
The banks at the top of the list was HSBC, Barclays and BNP Paribas.
Linking to dividend paying stocks, oil and gas companies for the past 150 years have been some of the most profitable companies in the world and with world oil prices closing on $100 a barrel, they are going to stay that way. It would be very hard for a bank not to lend to oil and gas and make the type of revenues it does. When oil and gas companies lose money, the banks will lend to other sectors, until that time you can own the companies and with the dividends you have a choice of what you wish to do with the money. Reinvest in renewables, reinvest in oil and gas or other choices.
There are more questions than answers, till the next time – to raising questions.