In a video interview below, Jay Hatfield, CEO and CIO of InfraCap Ltd, and I discuss global energy on July 29, 2022. We cover the following topics with a few takeaways and/or my observations:
Oil markets are characterized as being volatile but natural gas is even more so. Hatfield also mentions that natural gas is more volatile; it’s harder to store and transport than oil. This reduces the ability have much secure supply readily available.
U.S. production of oil and gas can be characterized as being in a rational growth mode, not necessarily “restrained.” Natural gas and oil have a many-decades run ahead.
The European energy crisis has its roots in a lack of natural gas supply and renewables challenges with respect to intermittency, even before Russia’s invasion. Nuclear facility shutdowns in Germany also conspired.
An all-EV-all-renewables world is physically impossible. I could only see a pathway if new materials are completely re-thought or advances are such that leapfrog today’s laws of physics and physicality.
The U.S. economy has tailwinds, given its energy resources and “old industry” dynamics.
We need to spend less time and money on disclosures, such as ESG, and more time actually solving existing energy-related problems. Hatfield flips the script on risk disclosures.
