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.
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.