Why have I heard about Tyson investing into lab grown, but I haven’t heard about big oil investing in renewable?
Tyson’s basic insight here is not to identify as “an animal agriculture company”. Instead, they identify as “a feeding people company”. (Which happens to align with doing the right thing, conveniently!)
It seems like big oil is making a tremendous mistake here. Do you think oil execs go around saying “we’re an oil company”? When they could instead be going around saying “we’re a powering stuff” company. Being a powering stuff company means you have fuel source indifference!
I mean if you look at all the money they had to spend on disinformation and lobbying, isn’t it insultingly obvious to say “just invest that money into renewable research and markets instead”?
Is there dialogue on this? Also, have any members of “big oil” in fact done what I’m suggesting, and I just didn’t hear about it?
It seems like big oil is making a tremendous mistake here. Do you think oil execs go around saying “we’re an oil company”? When they could instead be going around saying “we’re a powering stuff” company. Being a powering stuff company means you have fuel source indifference!
The main problem is that prior investment into the oil method of powering stuff doesn’t translate into having a comparative advantage in a renewable way of powering stuff. They want a return on their existing massive investments.
While this looks superficially like a sunk cost fallacy, it isn’t. If a comparatively small investment (mere billions) can ensure continued returns on their trillions of sunk capital for another decade, it’s worth it to them.
Investment into renewable powering stuff would require substantially different skill sets in employees, in very different locations, and highly non-overlapping investment. At best, such an endeavour would constitute a wholly owned subsidiary that grows while the rest of the company withers. At worst, a parasite that hastens the demise of the parent while eventually failing in the face of competition anyway.
Why have I heard about Tyson investing into lab grown, but I haven’t heard about big oil investing in renewable?
Tyson’s basic insight here is not to identify as “an animal agriculture company”. Instead, they identify as “a feeding people company”. (Which happens to align with doing the right thing, conveniently!)
It seems like big oil is making a tremendous mistake here. Do you think oil execs go around saying “we’re an oil company”? When they could instead be going around saying “we’re a powering stuff” company. Being a powering stuff company means you have fuel source indifference!
I mean if you look at all the money they had to spend on disinformation and lobbying, isn’t it insultingly obvious to say “just invest that money into renewable research and markets instead”?
Is there dialogue on this? Also, have any members of “big oil” in fact done what I’m suggesting, and I just didn’t hear about it?
Gonna cc to ea forum shortform
Yes, this is more about you not hearing about it.
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It seems that Tyson invested 150 million into a fund for new food solutions.
In contrast to that Exxon invested 600 million in algae biofuels back in 2009 and more afterward.
I do vaguely remember hearing of big oil doing that, though perhaps not as much as meat producers do with lab grown meat, try looking into it.
1. Might be a little bit harder in that industry.
2. Are they in charge (of that)? Who chose them?
you’re most likely right about it being harder in the industry!
I don’t think they need permission or an external mandate to do the right thing!
The main problem is that prior investment into the oil method of powering stuff doesn’t translate into having a comparative advantage in a renewable way of powering stuff. They want a return on their existing massive investments.
While this looks superficially like a sunk cost fallacy, it isn’t. If a comparatively small investment (mere billions) can ensure continued returns on their trillions of sunk capital for another decade, it’s worth it to them.
Investment into renewable powering stuff would require substantially different skill sets in employees, in very different locations, and highly non-overlapping investment. At best, such an endeavour would constitute a wholly owned subsidiary that grows while the rest of the company withers. At worst, a parasite that hastens the demise of the parent while eventually failing in the face of competition anyway.