Margin Call

Don’t look now, but ERCOT’s summer capacity forecast isn’t too promising with peak demand projected to hit a new record of over 77,000 MW. Will ERCOT have a summer version of their winter woes?

Identifying the root cause of Texas power problems isn’t as easy as many are led to believe, but just how many factors are contributing to situation, and why does the PUCT seem so out of sorts?

How is it that an electric energy market that was once touted as one of the best in North America, is now being exposed as a hotbed of corruption and cronyism?

Is green (energy) the new black (for oil demand)? Gas demand may fall, but diesel demand more than offsets losses from electrification.

Narratives are often written by those in power, but who benefits and what is the impact to oil price?

If economic incentives are discouraged to produce traditional energy, how does this impact price and the environment?

These topics and more explored by George P. and Eric Dixon, a senior physical and financial oil trader of nearly 20 years.

Gas demand may fall, but diesel demand more than offsets losses from electrification.

Narratives are often written by those in power, but who benefits and what is the impact to oil price?

If economic incentives are discouraged to produce traditional energy, how does this impact price and the environment?

These topics and more explored by George P. and Eric Dixon, a senior physical and financial oil trader of nearly 20 years .

- We wanted to understand what really happened with grid operations during the Polar Vortex, so we called on Josh.

- What we discovered will surprise and shock you even more.

- You can be mad or you can be informed.

- This is part 1 of a multi-part episode.

There is a talent gap in trading given the changes in the market.

We talk about how someone starts a career in trading today.

We also talk about how organizations should be looking to find and retain talent in today's environment.

The secular trends causing the talent shortage.

We also tackle the challenge of achieving diversity of thought and backgrounds in commodity trading.

Links:

www.hcinsider.com

www.humancapital.global

We explore the history of the talent side of the commodity cycles.

From the early days of merchant trading to banking led energy trading and now back to merchant traders and all the events that changed the mix of the participants in energy/commodity trading.

We also talk about how compensation has changed over this time and expectations of people working in trading organizations.

Links:

www.HCinsider.com

www.humancapital.global

Topics:

- Crude oil prices

- Inflation scaring up commodity super cycle

- Woke financing - the demonization of Oil & Gas

- A preview of our next couple of episodes

Topics:

- Context of the electric grid problems in Texas last week is the distortive nature of renewables in the generation mix.

- We cover the role renewables have played in the fuel supply in the Ethanol and Biodiesel industries.

- How government subsidized renewables have created a rent seeking monster in big agriculture, who are now a permanent part of the fuel mix.

- How renewable fuel prices have distorted market structure and led to higher than normal fuel prices which is simply passed through to the consumer.

- How the mechanism to track renewable fuels (RINS) has been a Rube Goldberg-ian system of epic incompetence, fraud and ultimately imposed such high compliance costs on refiners that the oil industry has spent the better part of the last few years begging the EPA for waivers to avoid bankruptcy.

- Explanation of the “Rinsanity events”

References:

https://www.reuters.com/article/us-usa-ethanol/u-s-refiners-plagued-by-rinsanity-see-half-step-on-biofuels-idUSBRE97605420130807

- A discussion following the Presidential EO dated 1/20/2021 revoking permit for Keystone XL pipeline

- Clarification of the extent of the permit - a section from Edmonton, AB to Steele City, NE

- We discuss what Enbridge has done to date in adding capacity from Canada to Cushing, OK. And why this matters.

- Is this really a big deal or simply a political football for all sides?

- Are democrat policies good for the oil industry that has tended to exhibit signs of Prader- Willi Syndrome when left to its own devices?

References

https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/executive-order-protecting-public-health-and-environment-and-restoring-science-to-tackle-climate-crisis/

https://rbnenergy.com/with-or-without-you-how-will-keystone-xls-latest-setback-impact-canadian-crude-oil-producers

https://en.wikipedia.org/wiki/Prader%E2%80%93Willi_syndrome#:~:text=Prader%E2%80%93Willi%20syndrome%20(PWS),obesity%20and%20type%202%20diabetes.

Continuation of the GME short squeeze and fallout one week later.

Who really was the predator and the prey in this situation?

Are financial markets rigged against the retail investor?

- Institutions Paying for retail order flow. Free Commission brokerage is like free social media. The customer is the product being sold into an execution advantage/front running scam.

We explore looking at trading as a dynamic playing field. Which is why most great traders are great poker players as well.