Indonesia and Malaysia are apparently among the few places on earth with geology suited to hold CO2. This has drawn the interest of Exxon Mobil among others, who recently secured “exclusive rights to CO2 storage” according to CEO Darren Woods. Meeting the “Zero by 50” goal requires burying 1 billion tons of CO2 annually by […]

Last week a Federal judge blocked completion of the Cardinal-Hickory Creek high-voltage transmission line. The 102-mile project linking Dubuque County, Iowa, to Dane County, Wisconsin has one mile remaining. Three environmental groups opposed its construction through a Mississippi River wildlife refuge. It’s needed to upgrade an existing transmission line built in the 1950s, add capacity, […]

Treasury bills yielding 5.3% are not the worst place to put some cash. Long term expected returns on US large cap equities are generally 5-7%. Schwab expects 6.2%. JPMorgan is at 7%. The Equity Risk Premium is the lowest it’s been in over two decades. S&P500 earnings projections for this year and next are roughly […]

The Artificial Intelligence boom means the need for vastly more computing power. This is leading to a sharp jump in data centers, with a consequent increase in projected electricity demand (see AI Boosts US Energy). Elon Musk noted the pressure this is putting on the supply of electric infrastructure. Electricity is stepped up to very […]

In recent years the International Energy Agency (IEA) has moved from providing objective forecasts to championing the world’s shift away from fossil fuels. In embracing a liberal political stance they’ve lost relevance to companies and governments making investment decisions to meet future demand. For example, the IEA projects peak oil demand within the next few […]

Last week I saw some investors in Florida before joining my partner Henry in Puerto Rico at the national sales conference for Catalyst Funds, our mutual fund partner. The warm, sunny weather and ocean breeze stimulated much useful interaction with clients and salespeople about midstream energy infrastructure. It’s always helpful to hear firsthand the questions […]

There’s no shortage of books, essays and documentaries warning that climate change will make Planet Earth uninhabitable. Therefore, Hannah Ritchie’s Not the End of the World provides a refreshing reminder of how much is going right and likely ways we’ll adapt to a warmer planet. Ritchie is no climate denier. She studied environmental science at […]

European imports of LNG rose sharply following Russia’s invasion of Ukraine two years ago. The US was well positioned to step in and provided virtually all the additional LNG Europe bought. The current pause on new LNG export terminals runs counter to these trade flows, but it’s increasingly clear this policy has few supporters other […]

American coal exports are booming. Exports of thermal coal rose 26% last year, to 44 Million Metric Tonnes (MMTs). This is mostly burned to produce electricity. We also exported 46.5 MMTs of metallurgical coal, typically used in industrial processes such as steel manufacture. Shipments of thermal coal to India doubled, to 14.1 MMTs, close to […]

Earnings for 4Q23 are almost complete. Most companies came in at or a few per cent ahead of market expectations. Cheniere (CEI) beat sell-side estimates by 11%, continuing a remarkable run. They are targeting a 1:1 ratio between buybacks and debt reductions and based on their long run desired share count should be retiring 12-13% […]