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Policy: Environment & Energy

Al Gore claims fossil fuels 'bubble' is about to burst

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Beltway Confidential,Climate Change,Ashe Schow,Energy and Environment,Coal

Former Vice President Al Gore believes there is a “carbon bubble” and that the bubble is about to burst, so people should stop investing in coal and oil.

Gore began talking up his notion Oct. 18, ahead of his global warming event, “24 Hours of Reality: The Cost of Carbon,” a discussion of the harmful effects of carbon on the planet.

“We have a carbon bubble,” Gore told Yahoo Finance reporter Aaron Task. “Bubbles by definition involve a lot of asset owners and investors who don’t see what in retrospect becomes blindingly obvious. And this carbon bubble is going to burst.”

Beyond the wonky investment lingo, Gore offers some investment advice — namely, divest from fossil fuels.

During a phone conversation with Gore, Joe Romm of the liberal site ThinkProgress said the former vice president urged people to divest from carbon-based energy because it is “morally right” and financially smart to do so.

Gore also said that fossil fuels companies have $7 trillion dollars in carbon assets (oil and gas reserves controlled by those companies) and that “no more than one-third can ever possibly be burned without destroying the future.”

Talk about alarmism.

Is ending the use of the other two-thirds the new goal of environmentalists?

If alternative energy sources aren’t viable by the time that one-third is used up, what would that do to the economy?

Gore didn’t say where people should invest their money, but seeing as he would benefit immensely from people investing in alternative energy companies, one can imagine what his advice would be.

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