I believe that solving all aspects of energy are the trade of the decade: availability, affordability, reliability, and security.
This comment crossed from Saudi energy minister Prince Abdulaziz bin Salman earlier today:
“I am a dinosaur, but I have never seen these things. The world needs to wake up to an existing reality. The world is running out of energy capacity at all levels.”
He warned that he'd never seen such a backdrop.
Today, US retail gasoline and diesel prices hit a record, feeding into inflation and spurring anger. High gas is working its way back into electricity prices and a spike is coming into the market.
The White House has had a total change in tune on oil and gas. There was report that Brazil's Petrobras told US officials it can't producer more after they reached out. In comments yesterday, the press secretary sounded almost desperate:
“We need to produce more oil and gas to beat Putin. Oil and gas industry, what do you need to produce more oil and gas?”
It's easy to point fingers at pipeline politics but it's a long story underinvestment, a shale boom that incinerated capital on lies about profitability at low prices and ESG. Mostly though I'd say it's about a misunderstanding of how much oil we will need for the decades to come.
With that, it's certainly not just an oil and gas trade. Green energy will continue to boom. Nuclear will make a comeback. Carbon capture will make huge strides.
It's important to remember that the world runs on energy, it's the linchpin on civilization and transitioning to abundant and sustainable energy is the chief challenge of this era.
