{"id":1820,"date":"2014-10-07T14:33:00","date_gmt":"2014-10-07T02:33:00","guid":{"rendered":"http:\/\/www.greenpeace.org\/new-zealand\/press-release\/the-berlin-wall-of-oil-begins-to-crumble\/"},"modified":"2024-07-12T09:07:25","modified_gmt":"2024-07-11T21:07:25","slug":"the-berlin-wall-of-oil-begins-to-crumble","status":"publish","type":"post","link":"https:\/\/www.greenpeace.org\/aotearoa\/story\/the-berlin-wall-of-oil-begins-to-crumble\/","title":{"rendered":"The Berlin Wall of oil begins to crumble"},"content":{"rendered":"\n<p>The Berlin wall was a symbol of the Soviet era like no other.&nbsp; When it was finally dismantled in 1989 it signalled the end of a system that had stood for nearly 70 years.&nbsp; A system that shaped the political landscape of the 20th century symbolising a lack of freedom and a source of fear.<\/p>\n\n<p>It is now 25 years since the Berlin Wall came down. As the bricks were shattered and families were reunited, the world rejoiced the end of the Cold War and looked forward to a better existence. It was a turning point in modern history.<\/p>\n\n<p>Now another system is showing signs of falling.<\/p>\n\n<p>A couple of weeks ago an iconic name (if not the iconic name) for the oil industry\u2019s wealth and power over the past century, announced they were divesting from fossil fuels. The Rockefeller\u2019s said, oil no more.<\/p>\n\n<p>If one moment could be said to mark the end of the all-encompassing era of petroleum \u2013 this may be it.&nbsp; While the Rockefeller Brothers Fund is only a part of the Rockefeller wealth, \u201cThis is like a snowball, and it\u2019s going to get more and more mass as it rolls forward,\u201d said president of the fund <a href=\"http:\/\/www.bloomberg.com\/news\/2014-09-22\/companies-pledging-action-as-leaders-set-to-talk-climate.html\" target=\"_blank\" rel=\"noopener noreferrer\">Stephen Heintz<\/a>.<\/p>\n\n<p>At the time the Berlin wall came down most people knew the significance.&nbsp; But the Rockefeller\u2019s plan to divest from the oil gas and coal industries seems to have barely registered in New Zealand media yet it has reverberated through the global investment community.<\/p>\n\n<p>To give some context.&nbsp;&nbsp; <a href=\"http:\/\/en.wikipedia.org\/wiki\/John_D._Rockefeller\" target=\"_blank\" rel=\"noopener noreferrer\">John D. Rockefeller<\/a> was to oil what Elvis was to rock n roll.<\/p>\n\n<p>The company he founded Standard Oil, went on to define the shape of oil dependency in the 20th century.<\/p>\n\n<p>The infamous <a href=\"http:\/\/en.wikipedia.org\/wiki\/Seven_Sisters_%28oil_companies%29\" target=\"_blank\" rel=\"noopener noreferrer\">Seven Sisters<\/a> oil cartel was supposedly <a href=\"http:\/\/www.aljazeera.com\/programmes\/specialseries\/2013\/04\/201344105231487582.html\" target=\"_blank\" rel=\"noopener noreferrer\">conceived at a meeting<\/a> in a Scottish castle in 1928.&nbsp; Three barons of the business including Walter C. Teagle of the Standard Oil Company, founded by Rockefeller in 1870 &#8211; the future Exxon, agreed to stop competing on price for the benefit of them all.<\/p>\n\n<p>John D.Rockefeller died with wealth equivalent of 1.5% of the GDP of the entire US economy \u2013 a greater relative wealth than any modern American billionaire.&nbsp; He largely had oil to thank for that wealth but his descendants and inheritors are moving on.<\/p>\n\n<p>The Rockefeller Brothers Fund claims a \u201cdeep commitment to combating climate change\u201d as one of their <a href=\"http:\/\/www.theglobeandmail.com\/report-on-business\/industry-news\/energy-and-resources\/philanthropies-investors-pledge-50-billion-fossil-fuel-divestment\/article20717852\/\" target=\"_blank\" rel=\"noopener noreferrer\">reasons<\/a>.&nbsp; The move is part of a <a href=\"http:\/\/www.theguardian.com\/environment\/2014\/sep\/22\/rockefeller-heirs-divest-fossil-fuels-climate-change\" target=\"_blank\" rel=\"noopener noreferrer\">50 billion divestment<\/a> campaign to coincide with the UN Climate Summit in New York.<\/p>\n\n<p>But there are other not so noble reasons why it\u2019s a good time to get out of oil as Valerie Rockefeller also put it to the <a href=\"http:\/\/www.bbc.com\/news\/world-us-canada-29310475\" target=\"_blank\" rel=\"noopener noreferrer\">BBC<\/a>, \u201cWe think fossil fuels are increasingly risky.\u201d<\/p>\n\n<p>This reality must be deeply troubling to the industry.&nbsp; One reason oil is risky is that the easy to get oil is pretty much gone. The oil majors are now spending more money on trying to find oil (capital expenditure) than what they are making from the oil they find (production).&nbsp; That is the definition of an unsustainable business.&nbsp; In it\u2019s article: Toil for oil means industry sums do not add up, the <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/5e923e3a-51d3-11e3-8c42-00144feabdc0.html#axzz3FLniQrKa\" target=\"_blank\" rel=\"noopener noreferrer\">UK Financial Times<\/a> said :<\/p>\n\n<p>&#8220;The economics of oil have become completely dislocated from historic norms, with the industry investing at exponentially higher rates for increasingly small incremental yields of energy.&#8221;<\/p>\n\n<p>This is why we see increasing belt-tightening from oil companies.&nbsp; Despite reports of a rosy future from woefully ill-informed&nbsp; Minister of Energy Simon Bridges \u2013 even the latest venturer into the jaws of the kiwi passion for oil free beaches \u2013 Norwegian oil giant Statoil \u2013 have just announced a cut of <a href=\"http:\/\/www.energyvoice.com\/2014\/10\/statoil-may-cut-500-workers\/\" target=\"_blank\" rel=\"noopener noreferrer\">500 jobs<\/a>.<\/p>\n\n<p>The global picture of high investment for poor return is mirrored in NZ with $2.98 billion spent on exploration and development-related activities over the past two years but by <a href=\"http:\/\/www.beehive.govt.nz\/speech\/speech-2014-new-zealand-petroleum-summit\" target=\"_blank\" rel=\"noopener noreferrer\">Bridges\u2019 own admission<\/a>, \u201cmost of the exploration activity has not yet yielded discoveries\u201d.<\/p>\n\n<p>Further to that there is a <a href=\"http:\/\/www.nzherald.co.nz\/oil-gas\/news\/article.cfm?c_id=273&amp;objectid=11337398&amp;ref=NZH_Tw\" target=\"_blank\" rel=\"noopener noreferrer\">looming price war<\/a> that could see the oil price drop.<\/p>\n\n<p>Oil prices going down is bad news for explorers because it squeezes the possible profit margins on unconventional sources like Arctic oil, tar sands and deep sea oil.&nbsp; That means New Zealand becomes a less viable financial risk for foreign drillers.<\/p>\n\n<p>While the law of finite resources (they run out) won\u2019t save us from the fact that climate change means we can\u2019t afford to burn even the reserves we have, the end of easy oil is messing with the economic viability of the industry itself.<\/p>\n\n<p>In short, we are witnessing the collapse of the global oil industry. At the same time the economics of oil and gas are going up, the cost (and economic viability) of cleaner, safer, more distributed energies such as solar, wind and electric transport are coming down.<\/p>\n\n<p>The crucial complement to the Rockefeller\u2019s taking their money out of oil is they are putting it into renewables.&nbsp; As one industry is abandoned another is backed.<\/p>\n\n<p>\u201cJohn D Rockefeller, the founder of Standard Oil, moved America out of whale oil and into petroleum,\u201d as Heintz, put it in a statement. \u201cWe are quite convinced that if he were alive today, as an astute businessman looking out to the future, he would be moving out of fossil fuels and investing in clean, renewable energy.\u201d<\/p>\n\n<p>We could only wish Steven Joyce and John Key had the Rockefeller foresight.&nbsp;&nbsp;&nbsp; But for those of us defending coastlines and climate, this all helps put the odds in our favour.<\/p>\n\n<p>Take your sledgehammers to the wall.<\/p>\n\n<p>These are good times for being a thorn in the side of oil explorers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Berlin wall was a symbol of the Soviet era like no other.\u00a0 When it was finally dismantled in 1989 it signalled the end of a system that had stood for nearly 70 years.\u00a0 A system that shaped the political landscape of the 20th century symbolising a lack of freedom and a source of fear.\u00a0\u00a0\u00a0\u00a0<\/p>\n","protected":false},"author":26,"featured_media":1821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_planet4_optimize_post_is_variant":false,"_planet4_optimize_experiment_name":"","_planet4_optimize_variant_name":"","ep_exclude_from_search":false,"p4_og_title":"","p4_og_description":"","p4_og_image":"","p4_og_image_id":"","p4_seo_canonical_url":"","p4_campaign_name":"not set","p4_local_project":"not set","p4_basket_name":"not set","p4_department":"","footnotes":""},"categories":[10],"tags":[26,29],"p4-page-type":[6],"class_list":["post-1820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-greenpeace","tag-oil-and-gas","tag-clean-energy","p4-page-type-story"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Berlin Wall of oil begins to crumble<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.greenpeace.org\/aotearoa\/story\/the-berlin-wall-of-oil-begins-to-crumble\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Berlin Wall of oil begins to crumble\" \/>\n<meta property=\"og:description\" content=\"The Berlin wall was a symbol of the Soviet era like no other.\u00a0 When it was finally dismantled in 1989 it signalled the end of a system that had stood for nearly 70 years.\u00a0 A system that shaped the political landscape of the 20th century symbolising a lack of freedom and a source of fear.\u00a0\u00a0\u00a0\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.greenpeace.org\/aotearoa\/story\/the-berlin-wall-of-oil-begins-to-crumble\/\" \/>\n<meta property=\"og:site_name\" content=\"Greenpeace Aotearoa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/greenpeace.nz\" \/>\n<meta property=\"article:published_time\" content=\"2014-10-07T02:33:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-11T21:07:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.greenpeace.org\/static\/planet4-aotearoa-stateless\/2018\/05\/Berlinermauer.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"400\" \/>\n\t<meta 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Abel","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.greenpeace.org\/aotearoa\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fc6fed7bab1b33d42a38f7ac5c140cb3f9e580f75927d2baecb26b7625991018?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fc6fed7bab1b33d42a38f7ac5c140cb3f9e580f75927d2baecb26b7625991018?s=96&d=blank&r=g","caption":"Steve Abel"},"description":"Steve Abel is a long-time environmental and climate activist who was part of the successful campaign to end native logging on crown land in the late 1990s; the GE Free environment campaign in the early 2000s; the Greenpeace campaign to stop Marsden B coalfired power station in 2005; and the alliance with Te Wh\u0101nau-\u0101-Apanui against Petrobras which led to a seven-year campaign that culminated in the end to offshore oil and gas exploration in Aotearoa in 2018. Abel is part of the urban tree protection group \u2013 Mana R\u0101kau \u2013 which emerged from the 240+ day occupation of the Canal Road native tree stand in Avondale that began in 2020. From 2021, as Senior Campaigner for Greenpeace Aotearoa, Steve led the project to provide free nitrate water testing for rural people on bore supplies impacted by dairy contamination. Having first volunteered for Greenpeace in 1997, Abel resigned from the organisation in early 2023 to stand for parliament.","url":"https:\/\/www.greenpeace.org\/aotearoa\/author\/sabel\/"}]}},"_links":{"self":[{"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/posts\/1820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/comments?post=1820"}],"version-history":[{"count":4,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/posts\/1820\/revisions"}],"predecessor-version":[{"id":49867,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/posts\/1820\/revisions\/49867"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/media\/1821"}],"wp:attachment":[{"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/media?parent=1820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/categories?post=1820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/tags?post=1820"},{"taxonomy":"p4-page-type","embeddable":true,"href":"https:\/\/www.greenpeace.org\/aotearoa\/wp-json\/wp\/v2\/p4-page-type?post=1820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}