(Petrolytics) - We've noticed an increasing number of articles describing nothing less than a pending cataclysmic event in the oil and gas sector. Similarly, we've noticed a number of articles similarly describing renewables, albeit with a more positive tone. It appears as though most energy sectors are treading water. Less economic activity; less demand for energy.
What will be interesting is the mix post this COVID-induced economic coma (we don't believe COVID is solely responsible, but more a trigger for what was bound to occur - this is beyond the scope of this morning update; but ponder it).
We're interested in any energy source that is economically feasible. Perhaps cleaner sources (including nat gas) and dirtier fuels aren't properly compared apples-to-apples in a strict monetary sense. More than likely, the negative externalities associated with any fuel source is inappropriately captured (e.g. carbon emissions from fossil fuels, strip mining and land/water alterations to enable EV batteries and wind turbines, or nuclear waste).
Anyway, it's worth contemplating. Modeling would be a fun hobby, but probably somewhat of a fools errand. Let the market decide, we say! A few links to get your day started:
Have a great weekend everyone. As always, please forward to us any interesting finds (industry gossip preferred!). We'll be sure to feature it in an article or the newsletter (assuming it passes muster, sorry).