Legendary investor Jeremy Grantham has delivered another stinging assessment of the global oil industry, suggesting that it is in inevitable decline.
Grantham, the UK investor who founded the $130 billion Boston-based GMO Asset Management, says the US fracking boom, hailed by politicians, the fossil fuel and mainstream media for bringing cheap oil to the US – is the biggest red herring in the history of oil.
“It will surely be seen in the future as a real testimonial to the sheer energy of American engineering at its best, employing rapid trials and errors – with all of the risk-taking that approach involves – that the rest of the world finds so hard to emulate,” he writes in GMO’s latest quarterly report. (On which we have reported before. See: Wind, solar to replace fossil fuels within decades).