Today we had the privilege of hosting Peter Lake, former Chairman of the Public Utility Commission of Texas (PUCT). Peter was appointed by Governor Greg Abbott to stabilize and strengthen the Texas electrical grid following Winter Storm Uri in 2021. He concurrently served as a Board Member of ERCOT and concluded his term with the PUCT in June 2023. Previously, Peter chaired the Texas Water Development Board. Since leaving public office, Peter has served as an independent strategic advisor and technical consultant through his firm, Cardinal Rose. We were thrilled to welcome Peter to our offices in Houston for a discussion of power systems broadly and his incredible experience tackling the Texas grid problems after the tragic events of February 2021.
 
In our conversation, Peter provides candid insights into the post Uri rebuilding experience and discusses how and why Governor Abbott reached out to him to take on this incredibly hard role. We discuss the challenge in regaining public trust following the crisis and the strategies required to rebuild confidence in ERCOT, his very productive partnership with interim ERCOT CEO Brad Jones, the decision-making process at PUCT and its impact on power systems, ERCOT’s unique governance structure and its relationship with PUCT, and the changes implemented after the 2021 storm. Peter shares his views on managing through a crisis, the importance of uniting stakeholders to facilitate efficient decision-making, and the rapid progress Peter and his team made with support from the Texas Legislature on projects that had previously been delayed. We explore the actions needed to address grid reliability, the challenges posed by Texas’s rapid power demand growth, the need to expand transmission and dispatchable energy resources, the critical balance between renewables and reliable backup power, the importance of market-oriented solutions, concerns with over-reliance on batteries, problems brewing now in other US grids, and the federal government’s role in system reliability. Peter also touches on the close relationship between water management and energy, the potential for adopting incentive models to improve power reliability, and much more. We walked away with a deeper appreciation for the efforts made by Peter and the teams at PUCT and ERCOT in 2021 to stabilize the grid and are grateful to Peter for sharing his unique insights. As Texans, we are all personally thankful to Peter and everyone else who stepped in to an unbelievably hard situation after the storm to improve the grid in Texas.   
 
Mike Bradley kicked off the discussion by highlighting that this week looks to be starting out as a pretty slow and less volatile trading week for most markets. On the bond market front, over the last 4-5 weeks the 10yr bond yield has increased from ~3.6% up to ~4.2% due to a belief that the FED won’t raise interest rates in 2024 as much as was previously expected. On the crude oil market front, WTI was up a couple dollars per barrel this week on talks of a further increase in Chinese stimulus. On the broader equity market front, the S&P 500 was down marginally this week after a significant runup over the past three months. Broader markets could trade sideways over the next couple of weeks as investors further digest the unexpected runup in interest rates, the beginning of Q3 earnings and the outcome of the U.S. Presidential election. On the energy equity front, a couple of oil service companies issued disappointing outlooks last week which weighed on the service industry. He also noted that this week’s Q3 reporting would be peppered with a handful of electric utilities, mining companies, natural gas E&Ps and oil service companies. Jeff Tillery discussed the growing excitement in nuclear with major recent developments (Three Mile Island, tech offtake contracts, and tech company investments) but cautioned to stay mindful of potential challenges and realisti

Today we were delighted to welcome Dr. Carolyn Kissane, Associate Dean of Graduate Programs and Global Affairs at NYU’s Center for Global Affairs. Dr. Kissane is a Lifetime Member of the Council on Foreign Relations, a Senior Fellow at the George H.W. Bush Foundation for US-China Relations, Co-Host of “The Clean Energy Revolution” Podcast, and Founding Director of NYU’s Energy, Climate Justice, and Sustainability Lab. Carolyn earned her Ph.D. in Comparative Education and Political Science from Columbia University and has been with NYU since 2004. Her research focuses on energy, sustainability innovation and policy, and cybersecurity. We were thrilled to connect with Carolyn for an insightful discussion on energy and global affairs.
 
In our conversation, Carolyn provides background on NYU’s energy studies, its interdisciplinary approach, and the growing importance of understanding the connection between energy systems, economic security, and human security. Carolyn shares observations on the increasing focus on climate and energy security at the Council on Foreign Relations, especially with regards to trade and tariffs. We explore the changing dynamics of oil markets, the ineffectiveness of sanctions, the increase of rule-breaking in international trade, shifting student perceptions of energy, global energy dynamics and the U.S.’s competitive advantage due to its abundance of natural gas resources. We touch on Carolyn’s experiences in Kazakhstan, the severity of the energy crisis in Europe and Germany’s economic struggles, the difficulty of reversing these challenges due to regulatory and high energy costs, how bureaucratic challenges and regulatory barriers are slowing down development in Europe and the US, Javier Milei’s political appeal, US energy competitiveness, and much more. We ended by asking Carolyn for her vision of climate policy leadership ten years from now. It was a broad-based discussion and we’re thankful to Carolyn for sharing her time and unique insights.
 
Mike Bradley kicked us off by highlighting broader equity market volatility, the beginning of Q3 Energy sector reporting, and observations regarding this week’s plunge in crude oil price. On the broader equity market front, ASML Holding’s stock priced plunged due to their semiconductor orders noticeably missing estimates which in turn pressured the “hot” Technology sector lower. Liberty Energy and SLB will be the first two oil service companies reporting Q3 results this week with investors focused on their NAM oil service activity & pricing outlook and international revenue guidance. On the crude oil front, WTI price plunged ~$5/bbl (~$70/bbl) this week due to three interrelated issues: Mideast supply concerns, a reduction in global oil demand estimates, and Brent oil traders recently repositioning themselves from a “net short” to a “net long” managed money futures trading position. Jeff Tillery added to Mike’s comments and emphasized that the narrow range analysts are predicting for oil prices in 2025 is unlikely to be accurate and to consider the potential factors that could drive prices either higher or lower than consensus.
 
We greatly enjoyed our global discussion with Carolyn today and hope you find it as interesting as we did. Our best to you all!

Today we had the opportunity to visit with Dr. David Spence, Chair in Natural Resources Law at the University of Texas and Author of “Climate of Contempt: How to Rescue the U.S. Energy Transition from Voter Partisanship.” Dr. Spence joined the University of Texas faculty in 1997 and his research focuses on the law and politics of energy regulation. He holds a Ph.D. in Political Science from Duke University and serves as a professor of Business, Government & Society at the McCombs School of Business in addition to teaching at Texas Law. “Climate of Contempt” was recently published in August and addresses the politics and forces that have affected energy policy. We were thrilled to thrilled to explore the book’s key themes and arguments with David.
 
In our conversation, we discuss the various factors David has researched contributing to ineffective policymaking, the value of engaging in open and honest discussions across ideological lines, how social media and advocacy media influence policy understanding, the destructive effects of today’s media landscape on comprehending complex issues, and issues with social media echo chambers. David shares some of the feedback he’s received since publishing “Climate of Contempt,” the reluctance of political leaders to address the failings of their own party members, the role of natural gas in energy policy, and the benefits of being technologically agnostic. We touch on shifts in attitudes toward nuclear energy, the need for more discussions around risks and trade-offs with energy technology, growing global energy demand, the potential for technological innovation in energy, and how differences in energy and environmental policy influence where industries decide to locate their operations. We also cover the challenges of regulating energy markets, the counterproductive demonization of oil and gas, potential ways to encourage cross-sector collaboration between academia, government and the commercial sector, and more. For additional resources related to “Climate of Contempt,” please visit www.climateofcontempt.com. We greatly enjoyed the discussion with David and appreciate him sharing his time and insights with us.
 
Mike Bradley opened the discussion by highlighting two areas, those being the recent surge in both U.S. bond yields as well as global crude oil prices. On the bond yield front, he discussed that despite the FED’s 50-basis point interest rate cut three weeks ago, the 10-year U.S. bond yield has surged from ~3.65% to ~4.00% mostly due to hotter-than-expected recent economic data. He flagged that several important economic reports will be released this week (CPI, PPI & Consumer Sentiment) and that these reports could create some added bond and equity market volatility. Regarding crude oil, in the past week WTI price surged to over $77/bbl (~$9/bbl gain) due to concerns of whether Israel would attack Iranian nuclear sites and/or crude oil export terminals/refineries. Last week’s news of a Chinese stimulus program also contributed to the surge in global oil prices, but one of the key reasons for the recent surge in oil price is a “short squeeze” which is an outgrowth of an extremely bearish trader positioning in crude oil futures (especially Brent). He also noted that on Tuesday, WTI price slid by over $3/bbl (~$74/bbl), as well as the price of several base metal commodities, on news that the Chinese government was holding back on additional economic stimulus spending. Jeff Tillery pointed out that while a stronger underlying economy is good for long-term energy demand, short-term price boosts from geopolitical turmoil may have a negative impact on stocks over time.
 
Thank you again to David for joining and thanks to you all for your support and friendship!

We are excited to share this Special Edition COBT focused on the impact of the recent dockworkers’ strike and its implications for the energy sector. As we send this out, you may have heard the strike has been suspended. It was and is a fascinating situation… and wait until you meet who we found to discuss the issues. 
 
We were lucky enough to connect with Dr. Salvatore Mercogliano, Associate Professor of History at Campbell University. In addition to his role at Campbell, Dr. Mercogliano also serves as an Adjunct Professor with the U.S. Merchant Marine Academy. Dr. Mercogliano has an extensive background in shipping and maritime history, having previously served as a merchant mariner with the U.S. Navy’s Military Sealift Command. He holds a Ph.D. in Military and Naval History from the University of Alabama and is also the host of “What is Going on With Shipping?” We were thrilled to hear Sal’s unique insights on the dockworkers’ strike and on the shipping world overall. One strong takeaway we had from the conversation with Sal is that shipping will be getting more expensive over the next decade for a number of reasons.
 
Sal first provides key background for understanding why the strike happened, differences between the International Longshore and Warehouse Union (ILWU) on the West Coast and the International Longshoremen’s Association (ILA) on the East and Gulf Coast, and recent contract history for the ILWU and ILA. We discuss the post-COVID surge in profits for container liners and how it has been a key driver for the ILA’s push for wage increases, the ILA’s concerns with automation, fearing job losses similar to what the ILWU experienced on the West Coast after automation was introduced, and the broader resurgence of unions’ power post-COVID across different industries. Sal shares his perspectives on the ILA’s leadership and influence, the potential economic impact of prolonged strikes (had the strike continued or if it resumes January 15), the effects on energy and refined product transportation, and rising shipping costs due to new fuel regulations, aging fleets, limited shipyard capacity, and longer lead times for shipbuilding. We also explore the evolving global shipping market, government involvement in strikes, global shipping’s critical role in the world economy, the cyclical nature of trade trends, the importance of maintaining open maritime routes for continued global trade, and much more. It was an absolutely fascinating discussion. After we hung up with Sal, we stumbled on many other issues to explore with Sal in the future (like the dark fleet that transports Russian oil for example).
 
As you’ll hear in the discussion, we reference our COBT episode with Captain John Konrad, CEO of gCaptain. The episode is linked here.
 
Mike Bradley kicked us off with a quick update on two current events: the East & Gulf Coast longshoremen’s strike and the escalating Middle East conflict. On the longshoremen strike front, he noted that equity markets haven’t been overly concerned that this strike would extend beyond the weekend, but if it does, then equity markets will begin to dial in some equity risk premium early next week. Regarding crude oil, he highlighted that WTI price spiked ~$4/bbl (to ~$74/bbl) on Thursday after President Biden was asked by a reporter whether he would support Israel striking Iran’s oil facilities and Biden responded that they’re discussing it. Oil markets are beginning to dial in some modest risk premium due to uncertainty of whether Israel will attack Iranian nuclear sites and/or key Iranian crude oil export terminals & refineries. He also noted that a key reason for the current oil price spike was a hedge fund trading squeeze brought on by an extremely bearish crude oil trading setup. He ended by noting that oil traders are beginning to focus on the December 1st OPEC meeting and whethe

Today we were delighted to host Toni Stojcevski, General Manager of Project Sales & Development at Wärtsilä Marine alongside David Millar, Principal of Markets, Legislative, and Regulatory Policy at Wärtsilä Energy. For those of you who aren’t familiar with Wärtsilä, the company is a famous Finnish provider of marine engines and also a large player in onshore power. Toni has served at Wärtsilä for over 20 years ago and specializes in marine engineering and business development, including medium speed combustion engines and alternative fuels. David is an economist who advocates for evidence-based energy policies that prioritize cost-effectiveness and reliability. He holds a Master of Environmental Management from Duke University and previously served as Managing Director of Resource Planning and Procurement Services at Ascend Analytics. We were delighted to connect with David and Toni and talk about Wärtsilä’s unique angles on the world. 
 
In our conversation, we discuss the critical role of shipping in the global economy and Wärtsilä’s efforts to develop solutions that meet emissions targets, including the creation of engines that can use traditional fuels but also natural gas, methanol, ammonia, and hydrogen. Toni shares his insights on the evolution of fuel use in shipping, highlighting the global fleet’s historical reliance on bunker fuel and how that has changed in recent years. Toni emphasizes the complexities and costs associated with transitioning to alternative fuels, as well as the technological challenges with new fuels, notably in fuel supply infrastructure, especially for hydrogen and ammonia. We explore the relative differences in different fuel prices and the impact of larger tank sizes on shipping costs and cargo capacity, whether existing fuels can become more efficient, and examine potential future shipping technologies such as marine batteries and micronuclear power. David provides background on Wärtsilä’s power solutions including gas engines for peaking and balancing generation, the intricacies of using hydrogen as a long-duration storage medium and the infrastructure needed, as well as the cost of generating electricity with Wärtsilä’s engines and how it compares to other generation methods. We also cover the role of modular and efficient energy technologies in reducing costs and risks for utilities and power producers. We circle back with Toni towards the end of the discussion to hit on Wärtsilä’s development of carbon capture technology for vessels unable to switch to new fuels and cover the size and growth of the global merchant shipping fleet. We conclude by asking both David and Toni what they think the shipping and power energy mix might look like in ten years.
 
For our COBT history buffs, we previously had the opportunity to host Karl Meeusen, Director of Markets, Legislative and Regulatory Policy at Wärtsilä (episode linked here).
 
Mike Bradley opened the discussion by highlighting three key topics: the East & Gulf Coast dockworkers strike, escalating conflict in the Middle East, and the sharp decline in U.S. natural gas storage surplus. On the dockworkers strike, he noted it was the first one on the East Coast since 1977, with these ports handling half of all U.S. container shipments. Retailers are under pressure as investors assess potential supply chain disruptions during the holiday season and the US Presidential election ramifications of an extended strike. Regarding crude oil, WTI prices rose $3/bbl to $71/bbl due to increasing Middle East tensions following Iran’s missile strike on Israel. Despite this, oil prices have been trading sideways, even with bearish Brent crude setups and news of a large Chinese stimulus plan. The upcoming OPEC Joint Ministerial Monitoring Committee meeting on October 2nd could bring mor

Many of you have likely noticed, as we have, some of the news coming out of Delaware about certain rulings, the debate around those rulings, and the subsequent debate around actions taken by the legislature to clarify Delaware law. As we’ve read about these developments, we were intrigued and turned to the team at Wachtell, Lipton, Rosen & Katz (WLRK) for their thoughts on these matters. We were extremely pleased to have Ryan McLeod, Partner, and Dan Neff, Partner and Member of the Executive Committee, join us for a far-ranging and intriguing discussion on these issues.
 
Ryan joined WLRK in 2013 and specializes in representing corporations and directors in litigation involving mergers and acquisitions, proxy contests, corporate governance disputes, and class and derivative actions involving allegations of breach and fiduciary duty. He also serves as a Lecturer in Law at Columbia and has extensive experience litigating corporate matters in the Delaware Court of Chancery and the Delaware Supreme Court. Dan has over four decades of experience advising major companies in high-profile transactions and served as WLRK’s Co-Chairman for 20 years through October 2023. He specializes in mergers and acquisitions, corporate governance, and securities law and has represented clients in a broad range of industries including energy, technology and telecom, chemicals, pharmaceuticals, manufacturing/industrials, retail/consumer products, gaming, and more.
 
In our conversation, Ryan first provides perspective on Delaware’s importance to corporate law and the large percentage of companies that are incorporated there. Ryan walks us through three specific legal rulings that prompted amendments in Delaware including the Twitter stockholder litigation, the Activision merger case, and a case involving contractual governance and shareholder veto rights. We discuss the significant and unique amount of public debate surrounding these amendments, the practical impact of Delaware rulings on corporate governance, particularly in activist settlements and private equity deals, and the implications for boards and corporate lawyers. We also touch on whether these developments might lead boards to become more cautious in decision-making, the historical context of Delaware appraisal cases, and changing complexities around CEO compensation. We explore the Caremark Doctrine’s increasing relevance in corporate governance, the complexity of preparing board minutes to show transparency and thoroughness without over-disclosing, and emerging corporate governance risks. Ryan and Dan also share their insights on what sets Delaware law apart from other states, how companies manage external pressures from activism, the future of corporate governance, and much more. Thank you, Ryan and Dan, for sharing your insights and expertise with us all! We learned a tremendous amount.
 
Mike Bradley kicked us off with a few updates. He noted that the FED’s 50-basis point rate cut was initially received well, but since then, most markets have traded sideways. On the bond market front, the 10-year U.S. bond yield actually increased as the rate cut was mostly expected. He noted consensus around additional rate cuts in 2024 and 2025. He also noted that the 2yr/10yr bond yield spread widened to ~20-basis points after being inverted for the past two-plus years. On crude oil, WTI price has traded sideways this week (~$71/bbl) and Mike discussed several positive developments which could temporarily be supporting crude oil prices including a Chinese stimulus program, continued historic “net short” length in Brent futures and growing Mideast conflict. OPEC published its annual World Oil Outlook this week (linked here) and again raised its global oil demand estimates (~113mmbpd for 2030 & ~120mmbpd for 2050) which is well above the view of many others. He then flagged that this week is Climate Week in N

Today we were delighted to welcome back our good friend Roger Pielke Jr. for an engaging discussion on the evolving climate policy and energy landscape. Roger is the author of “The Honest Broker” on Substack which reaches 30,000+ subscribers across 153 countries. He is a Nonresident Senior Fellow at the American Enterprise Institute where he focuses on science and technology policy, the politicization of science, government science advice, and energy and climate. Since 2001, Roger has served as a professor in the Environmental Studies department at the University of Colorado Boulder and will retire from academia at the end of 2024. We last hosted Roger on COBT on September 29, 2023 (episode linked here) and were excited to get him back to hear his latest insights on how the world has changed in the past year, especially in the climate community.

Roger joined us from Tokyo, where he is speaking at a Symposium hosted by the University of Tokyo on Japanese energy strategy and climate policies. In our conversation, we discuss how 2023 so far has been one of the most inaccurate in seasonal hurricane forecasting history with fewer named storms than predicted, the history of hurricane forecasting, and the groups and organizations responsible for hurricane season predictions. Roger shares his perspectives on the complexity of climate modeling and its limitations, human impact on climate and the importance of focusing on risk management rather than debating the future, and Japan’s energy landscape and how it’s a serious national security issue for the country. We explore the debate within the climate science community about the accuracy and relevance of current climate scenarios, the slower pace of climate modeling with updates every 10-20 years, the importance of understanding historical climate variability to better prepare for the future, and critical population assumptions in climate models. We touch on the need for improved communication in climate science and energy policy, future trends for climate science, Roger’s diverse audience, and much more. It was a fascinating discussion and we greatly appreciate Roger helping us understand this complex field better.

Mike Bradley opened the conversation by highlighting that most markets so far this week (bonds, commodities, currencies & equities) were focused on Wednesday’s FOMC Rate Decision Meeting (1pm CST). On the bond market front, the 10-year U.S. bond yield was unchanged this week (~3.65%). He noted that odds last week had favored a 25-basis point interest rate cut but that consensus had shifted this week to a 50-basis point cut. He further noted (excluding 2001 & 2007 recessions) that the S&P 500 has typically rallied a little over 10% in the 6-months following the beginning of interest rate cuts. On the crude oil front, WTI surged back above $71/bbl after recently bouncing off a strong technical trading support level of $65/bbl. Mike shared a chart that exhibited Brent Oil Managed Money Net Long Contracts vs Brent Oil Price and noted that this was the first time, in the last 10-15 years, that Managed Money was actually “net short” Brent oil future contracts. This signifies that oil traders are extremely bearish Brent oil futures for what they see as a slowing global economy, surging non-OPEC oil production growth and oversupplied global oil S/D in early 2025. He further noted that this “net short” position was larger than it was in April 2020 (Brent price ~$20/bbl) which also seems to signal that oil traders today aren’t fearful that OPEC can or will curtail additional barrels (like in previous go-arounds) to balance global crude oil markets. Brett Rampal highlighted this week’s announcement of the NRC’s issuance of a construction permit for the Natura Resources Molden Salt Reactor (Natura MSR-1) at Abilene Christian University, marking the first liquid salt fueled reactor licensed by

Today we had the pleasure of hosting the team from Cornerstone Government Affairs for an engaging discussion on energy policy and the upcoming US Presidential Election with Jack Belcher, Principal, John Sandell, Principal, and Sarah Venuto, Principal and Counsel. Cornerstone is an independent bipartisan consulting firm specializing in federal and state government relations, public affairs, political and grant consulting, and business advisory services. Jack, John and Sarah are seasoned experts in navigating the complexities of Washington DC. Jack has over 30 years of experience in energy and energy policy and previously held roles as Manager of Regulatory Affairs and Policy at Shell and Staff Director for the US House Subcommittee on Energy and Mineral Resources. John is an expert in tax policy and formerly served the members of the US House Committee on Ways and Means. Sarah previously served as Director of the Office of External Affairs at the Federal Energy Regulatory Commission, Senior Advisor and Chief Counsel to Senator Joe Manchin, and Democratic Staff Director for the Senate Energy and Natural Resources Committee. We were thrilled to connect with the Cornerstone team to explore this timely and important topic.
 
Our conversation centered on a report Cornerstone published entitled “A Guide to Forecasting Energy Policy In The Next White House: Trump V. Harris” (linked here). Jack first provides background on Cornerstone’s history and growth into the largest independent government relations firm in DC. We touch on the implications of the Chevron Deference case on regulatory agencies, its significance for future energy policy and regulation, and how it will impact Congress and the need for additional technical expertise there. We cover the complexities of Presidential Administration changes and challenges of transitioning political appointments, the future of the Inflation Reduction Act under different administrations, and efforts to streamline permitting and infrastructure development. Jack, John and Sarah offer their insights on how a Trump or Harris administration might approach energy policy and rising energy prices for businesses and consumers. We discuss areas of bipartisan support including nuclear energy, tariffs, alternative fuels, and competition with China, how the next administration might balance state-level initiatives with national policy, the upcoming 2025 Tax Debate led by the Ways and Means Committee, and much more. It was an insightful discussion and we want to thank Jack, John and Sarah for sharing their perspectives and time with us on a busy day in DC.

Mike Bradley opened the conversation by highlighting that broader equity markets were down Tuesday driven by JPMorgan Chase’s cautious comments. In the bond market, the 10-year U.S. bond yield traded at ~3.65, down 20-30bps in recent weeks. The U.S. 2yr/10yr yield bond spread flipped back to positive after two years of inversion, this type of flip after a lengthy period of backwardation tends to precede recessions. He noted the importance of this week’s economic reports with August CPI & PPI and Initial Jobless Claims reporting over the next couple of days. On crude oil, he also shared a chart of the WTI crude oil curve and noted that the curve structure had flattened out through 2035, primarily due to concerns over global/China oil demand after being in steep backwardation over the prior 3mo, 6mo & 12mo periods. He concluded by mentioning that crude oil prices were technically oversold, with traders remaining bearish but waiting for significant changes in global oil demand to unwind net short bets.

Jeff Tillery built on Mike’s comments and noted the demand concerns and OPEC’s spare capacity reducing upside optionality for long-term investors. Brett Rampal highlighted a significant

We are thrilled to share this COBT episode recorded live from Plant Vogtle featuring John Williams, Senior Vice President of Technical Services and External Affairs at Southern Nuclear, John Kotek, Senior Vice President of Policy Development and Public Affairs at the Nuclear Energy Institute (NEI), and Bill Flores, Vice Chairman of ERCOT and Veriten Senior Advisor. Brett Rampal and I had the pleasure of traveling to Waynesboro, GA for an exciting tour of Vogtle to see the completed units before sitting down with John Williams, John Kotek and Bill Flores for their perspectives on Vogtle and the broader nuclear energy landscape in the US and globally.
 
Vogtle is the largest generator of clean energy in the US and is jointly owned by Georgia Power, Oglethorpe Power Corporation, the Municipal Electric Authority of Georgia and Dalton Utilities. The plant was named after Alvin Vogtle, a past Chairman, President and CEO of Southern Company and World War II veteran. The film “The Great Escape” was based in part on Mr. Vogtle’s courageous wartime experiences (additional history linked here). In our conversation, John Williams first shares key background on Units 3 and 4 and how they’ve improved upon Units 1 and 2 in terms of technological advancements and safety features. We discuss the massive project of constructing Units 3 and 4, which involved a workforce of over 11,000 on-site employees, the economic benefits of nuclear facilities, the costs associated with building and operating nuclear plants, the US and global outlook for constructing additional AP1000 units, and the impact of nuclear energy development in the US, as well as its broader implications for global energy security. We touch on the obstacles faced during the construction of Vogtle 3 and 4 including regulatory challenges, the Fukushima incident in Japan, the bankruptcy of Westinghouse in 2017, and the impact of COVID-19 in 2020. In building the new units, Southern Company also faced the difficulty of finding an experienced workforce and re-creating a nuclear supply chain with Units 3 and 4 being the first new build nuclear plants in the US in 30 years. The scale of the project and site really struck us and John Williams put that into perspective when he pointed out that the concrete used for the expansion could lay a sidewalk from Waynesboro to Seattle and back. We also cover the safety and security of the facility, concerns over losing expertise as nuclear workers move to other industries with no other nuclear plants currently being built in the US, nuclear waste management, the growing appeal of nuclear energy careers to students, and much more. We were highly impressed with the entire experience and are excited to share our findings with you.

Mike Bradley wasn’t able to join the Vogtle field trip but passed along his market observations. He noted that markets (bonds, commodities and equities) all traded lower on Tuesday. From a broader equity market standpoint, the S&P 500 (-2.2%) and Nasdaq (-3.2%) were both pressured lower on Tuesday due to a substantial pullback in the S&P Technology sector (-4.4%) and shares of NVIDIA (-9.5%). Additional pressure could befall the S&P 500 given that September is historically the “worst” performing month for the S&P 500 by far, with the average September decline (over the last five years) being just over 4%. From a crude oil standpoint, WTI price traded down ~$3.25/bbl (closing at ~$70.25/bbl) on news that Libya was looking to restart ~0.5mmbpd of crude oil exports that had been temporarily curtailed. Goldman Sachs downgraded its long-held bullish copper call (mostly due to signs of slowing Chinese copper demand), which is also one of the main culprits that has been hanging over crude oil markets slowing global oil demand concerns. Given that this week’s COBT focus was on Vogtle, he rounded

We were honored this week to welcome Senator Kay Bailey Hutchison and John Rutherford for this Special Edition COBT. Senator Hutchison is a Founding Member of the KBH Energy Center at the University of Texas and has had a distinguished career in both the public and private sectors, including serving as the US Ambassador to NATO.  We previously had the pleasure of hosting Senator Hutchison on COBT in November 2023 (episode linked here). John is an expert energy and finance executive and serves on the KBH Energy Center Executive Council in addition to board positions with Enterprise Products Partners and TD Williamson. Recently, Governor Abbott appointed John to the Teacher Retirement System of Texas Board of Trustees. We were excited to speak with Senator Hutchison and John about the KBH Energy Center’s upcoming Symposium in September and also mix in some observations about the current world.

This year’s KBH Energy Center Symposium theme is “Energizing Tomorrow – Tackling Today’s Energy Challenges while Preparing for the Future.” The event will take place on Friday, September 13 in Austin. In our conversation, Senator Hutchison and John touch on the Symposium’s history and the KBH Energy Center’s unique structure, collaborating with the business, law, engineering, and soon geosciences schools at the University of Texas. We discuss the Symposium’s agenda (linked here) with panels focused on the evolution of LNG, emerging energy trends, technology, AI, energy storage, and more. As you’ll hear, the Symposium is nearing capacity but there is still room to attend. Registration details can be found linked here. While discussing the history of the KBH Energy Center as well as the agenda for the Symposium, we also found time to discuss Senator Hutchison’s experience as the Ambassador to NATO, how critical energy is to the world economy, and some of her thoughts on the war in Ukraine. As you will hear, her direct experience with Putin informs all her judgements. We are excited for what promises to be a fantastic Symposium and greatly appreciate Senator Hutchison and John for joining us.
 
We hope you enjoy the discussion and that you’ll consider attending the Symposium. We also hope you have a great Labor Day weekend and enjoy this last weekend of summer. Our best to you all!