Energy investment is essential for AI and sustainability

Energy investment is vital to drive an AI revolution or green boom. So, why does the sector remain unloved?

Drax Coal fired power station
(Image credit: Travelpix Ltd)

One striking feature of today’s markets is how much investors seem to dislike energy. The sector isn’t exactly languishing: the MSCI World Energy index has returned 25% per year over three years in sterling terms. 

Yet it still feels like a most reluctant bull market in which many buyers would rather not participate. It certainly doesn’t help that the heavy focus that many asset managers put on sounding green and sustainable left them completely on the wrong side of the market when oil roared back after the pandemic. But the general sense of discomfort around the sector goes deeper than that. 

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.