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Profits from oil-and-gas production have surged as crude prices hover at elevated levels, but volatile returns and a fraught political climate have created a divide among the biggest private-equity firms about whether investing in the sector is worth the headache.
Many public pension funds and endowments that invest in private-equity funds have put pressure on their managers to stop backing producers of fossil fuels and invest more in cleaner sources of energy. The energy market’s boom-and-bust cycles also have translated into poor investment returns over the long term.
This article was written by and originally published on www.wsj.com