Canada is one of the largest oil and gas producing nations in the world, and the oil and gas sector is its most important export industry.With the rapid increase of green energy investments globally, stock markets have begun viewing oil and gas firms in Canada and the United States as mature with an uncertain future — despite recent record profits and increases in stock prices.A prudent and economically viable energy transition to a low carbon economy is of the utmost importance for the future prosperity of the country. As part of the transition, Canada must become a lucrative destination for clean tech investments.The International Energy Association reports clean energy investments (including nuclear) are continuing to grow over fossil fuel investments, with US$1.7 trillion invested in clean energy in 2023, compared to US$1.1 trillion in fossil fuels. This trend will only continue in the coming decades.Our recent analysis of stock market data from 2018 through 2022 provides important information about how capital markets view the risk and return for oil and gas companies and clean tech firms in both countries.In our study, we examined how stock markets in Canada and the U.S. value traditional energy companies, clean tech companies, and the prospects for both.Our study suggests there are large differences between the clean tech industries in Canada and the U.S. Clean tech has much better prospects in the U.S., while oil and gas firms in Canada may outlast their American counterparts.Our report indicates that markets view clean tech firms as growth firms in both Canada and the U.S., despite disappointing stock returns for these companies since 2021. Growth firms are companies that reinvest their current earnings into operations to further expand rapidly and then aim to deliver profits later on. (ICE TORONTO)

Fonte notizia: https://www.canadianmanufacturing.com/