A surprise production cut from OPEC+ earlier this month has rocked oil markets. The price of oil rallied following the announcement but have since stabilized as inflation concerns linger. All of this unfolding as the U.S. continues to shift towards cleaner and more sustainable forms of energy. How much of an impact will the OPEC cuts have on energy and overall inflation? And where can investors find opportunity within the sector? Paul Gooden, Senior Research Analyst, joins us today to discuss the latest trends in the U.S. energy sector, including his investment thesis for the months ahead. Paul explains the “energy trilemma” framework of balancing affordability, sustainability and reliability, to host Pamela Ritchie today. Without managing all three, Paul says, you get unintended consequences, like coal demand being at an all-time high today. He also notes the energy transition is still in the first innings, with peak oil demand not forecasted until the 2030s or later. CapEx on oil and gas is 70% below its 2014 peak and Paul sees opportunities for more CapEx in oil field services, as well as opportunities in the clean energy space if we are disciplined as investors.

Recorded on April 19, 2023.

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