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ANALYSIS: How Woke Investors Are Making Your Gas Prices Higher

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Sarah Weaver Staff Writer
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Just when we needed oil production to increase the most, woke investors are deciding to boycott fossil fuels.

Americans are paying $5 a gallon at the pump, and prices aren’t expected to lower any time soon. Meanwhile, investors are claiming that climate change concerns demand gas companies decrease their production. Lower supply means scarcity, and scarcity leads to even higher prices.

Investors are using ESG (Environmental, Social, and Governance), a form of investing that scores companies based on their perceived commitment to environmental and social causes. But the scoring system is causing some to scratch their heads, as Elon Musk’s electric car company didn’t even make the S&P 500 ESG Index, but the gas company Exxon ranked in the top 10.

In perhaps the most egregious example of this environmentalist agenda being played out, the massive investment firm Blackrock used its financial sway with Exxon Mobil to vote in three activist board members last year. Before these board members, the company had a goal to increase production by 25% over the next 5 years. After Blackrock placed these activists on the gas company’s board, the company reduced its oil production by 20%. (RELATED: ANALYSIS: There’s A $10 Trillion Behemoth That’s Hellbent On Forcing America To Be Woke)

But it wasn’t just Blackrock that supported activist investors who slashed oil production when Americans needed it most. Statestreet Corp and Vanguard Group both wielded their power as investors at the oil and gas company to encourage gas companies to stop producing oil.

“The proxy battle was the biggest test yet of Wall Street’s receptivity to a campaign about the risks posed to business from climate change and the transition away from fossil fuels,” the Wall Street Journal said of the push in May of 2021.

Exxon isn’t the ESG climate activist’s only target. Last month, activist shareholders disrupted Shell’s annual meeting, demanding the gas company cease its development of fossil fuels. The 50 shareholders screamed, “Shell must fall”, and “your profits will only drown us out for so long,” delaying the meeting for almost three hours.

“2021 marked an increase in a willingness on the part of large institutional investors to take action against corporate boards where they perceive a lack of progress on ESG issues,” the Corporate Governance Institute noted. (RELATED: ‘Tough Summer’: Energy Sec. Makes Bleak Forecast, Signals Concern About Gas)

President Biden is realizing too late that his administration’s attack on fossil fuels is backfiring for Americans at the gas pump. In June, the president issued a fiery letter to oil executives, accusing them of causing gas prices by reducing refinery capacities and making too much profit.

“Your companies and others have an opportunity to take immediate actions to increase the supply of gasoline, diesel, and other refined product you are producing and supplying to the United States market,” Biden wrote in the letter.

West Virginia took matters into their own hands, threatening to blacklist several investment firms that used their financial influence to advocate against the fossil fuel industry. State Treasurer Riley Moore alerted BlackRock, Wells Fargo, JPMorgan Chase, Morgan Stanley, Goldman Sachs and U.S. Bank that they had 30 days to prove they had not turned their backs on the natural gas industries before being placed on the blacklist. In November, Moore had announced he was leading a 15-state coalition to assess whether massive investment firms were boycotting the fossil fuel industry.

The ESG attack on the fossil fuel industry seems to have crept into the White House, as well. Biden is looking everywhere but home for a quick fix to the gas price disaster. Boosting domestic oil production is one solution the Biden Administration seems unwilling to consider.

“ESG actively engages with these companies and engages with the market to drive a political outcome,” Utah State Treasurer Marlo Oaks said on Tucker Carlson Today in June.

“Today’s inflation really starts with ESG. Because if you think about why gasoline prices are so high, a lot of it is the supply issue. And the reason we don’t have enough supply in this country —one reason why—is that we don’t have enough capital  going into oil and gas projects.”

The woke investors implementing ESG are making the country’s current crisis of oil production worse. Woke investors are declaring a war on fossil fuels, but their activism simply exacerbates gas prices.