Thanks for another excellent column. Do you see any indication that the US government may change its energy policy after the mid term election ? It seems to me that the later the government changes its energy policy, the longer will be the duration of the current bull market. When you restrict the supply of an item that is necessary for life but without a viable cheap substitution , you will only make price of the item higher. Interestingly, Crude Chronicles has shown that the best annual return of oil and gas historically took place when Democrats control White House, House and Senate (https://thecrudechronicles.substack.com/p/you-may-not-like-the-guy-in-the-white?utm_source=profile&utm_medium=reader2).
Unfortunately, there are no indications of any coming change in perspective from the Biden Administration regarding energy. I suppose things can change post midterms, but it seems pretty unlikely given the hold "climate only" ideology seems to have on this administration. And I have observed a similar conclusion as Crude Chronicles. The perception that Rs are "good" and Ds "bad" is true only when it comes to rhetoric toward oil & gas. It is the hostile supply polices of Ds that contributes to tighter oil/gas markets and higher oil and gas prices.
Mr. Biden seems could not make up his mind. On Monday October 31, he was accusing oil companies for not using their record profit to increase production:
What a fantastic piece! I would only add that the language of energy is heavily biased at this point. For example, “clean energy” isn’t clean. There is the environmental impact of intensive mining operations, the burning of fossil fuels to make EVs, etc., and other negative impacts such as wind turbines killing raptors. Mark Mills has shown that an EV produces 10+ tons of carbon dioxide before the engine is even turned on.
And there has never been, I. The history of the world, an “energy transition”. Each new source of energy is additive to those that existed before.
Oil and gas is a generational investment opportunity and you are all over it!
Arjun,
Thanks for another excellent column. Do you see any indication that the US government may change its energy policy after the mid term election ? It seems to me that the later the government changes its energy policy, the longer will be the duration of the current bull market. When you restrict the supply of an item that is necessary for life but without a viable cheap substitution , you will only make price of the item higher. Interestingly, Crude Chronicles has shown that the best annual return of oil and gas historically took place when Democrats control White House, House and Senate (https://thecrudechronicles.substack.com/p/you-may-not-like-the-guy-in-the-white?utm_source=profile&utm_medium=reader2).
Unfortunately, there are no indications of any coming change in perspective from the Biden Administration regarding energy. I suppose things can change post midterms, but it seems pretty unlikely given the hold "climate only" ideology seems to have on this administration. And I have observed a similar conclusion as Crude Chronicles. The perception that Rs are "good" and Ds "bad" is true only when it comes to rhetoric toward oil & gas. It is the hostile supply polices of Ds that contributes to tighter oil/gas markets and higher oil and gas prices.
Mr. Biden seems could not make up his mind. On Monday October 31, he was accusing oil companies for not using their record profit to increase production:
https://www.msn.com/en-us/news/politics/biden-floats-tax-on-oil-companies-that-dont-lower-pump-prices-increase-production/ar-AA13AbW6
Then today (November 6) he is promising his supporters "no more drilling". https://www.msn.com/en-us/news/politics/biden-promises-no-more-drilling-two-days-before-crucial-midterm-elections/ar-AA13Oa62
How the heck people can treat him (and the country he represents) seriously ?
What a fantastic piece! I would only add that the language of energy is heavily biased at this point. For example, “clean energy” isn’t clean. There is the environmental impact of intensive mining operations, the burning of fossil fuels to make EVs, etc., and other negative impacts such as wind turbines killing raptors. Mark Mills has shown that an EV produces 10+ tons of carbon dioxide before the engine is even turned on.
And there has never been, I. The history of the world, an “energy transition”. Each new source of energy is additive to those that existed before.
Oil and gas is a generational investment opportunity and you are all over it!
Thank you Weston. And 100% on your comments.