Where I think Neal gets it wrong is that with north of $35 billion (with a B) sitting in the bank, Exxon and other oil companies are in a great position to acquire and scale businesses and technologies that they believe in once proven. That liquidity is ultimately the goal of VCs, so by placing some very early bets at low valuations, they stand to make massive multiples on the few companies that prove themselves.

dan
http://greenhome.huddler.com

But oil companies also have a vested interest in maintaining the status quo. A small but real liability in a period of change such as Peak Oil.

I agree most VCs from Silicon Valley don’t understand energy. Look at what they’ve chosen to invest in!

It all boils down to whether we are at a leaping off point to move away from oil, or that time has not occurred yet. Oil companies have an ability to delay that time to some extent (blocking innovation, etc.) but cannot do so indefinitely.

The Prius/Ford Escape hybrids will prove to be the camel’s nose that finally got under the tent. Because hybrids are leading to plug-in hybrids, and PHEVs will lead to dramatically lower oil use, and considerably less sway of big oil on transportation.

Yes, we should all beware hubris. Even the oil companies.