Energy Transfer (ET) is the name most widely owned among those financial advisors we know with direct investments in the sector. It is perennially cheap, and it’s a frequent topic of conversation. It’s also a significant position of ours, so it was especially pleasing to see their strong second quarter earnings. As well as beating […]
By 2035 the demand for US natural gas will reach 163 Billion Cubic Feet per Day (BCF/D) according to Wells Fargo, an increase of half from last year. The twin drivers of this will be power generation whose natural gas consumption will rise from 36 BCF/D to 61 BCF/D, and exports, mostly Liquefied Natural Gas […]
The 75th edition of the Statistical Review of World Energy contains all the data a student of global energy could need. If you need to know Latvia’s solar power generation over the past couple of years (1.4 Terrawatt Hours and 2.0 respectively), this is the place to look. Last year the world produced 600 Exajoules […]
Since the Iran War began at the end of February, the price of European LNG and a composite of three US LNG exporters (Cheniere, Venture Global and NextDecade) have tracked each other fairly reliably. At the outbreak of hostilities, LNG investors were slow to realize the opportunity, but after a month of conflict both were […]
We’ve been providing sector updates to a number of clients recently. Midstream had a good 1Q but stalled during 2Q. The resumption of hostilities last week pushed stocks higher, but even without that we think valuations remain attractive. Enterprise Value/EBITDA at 11.1X is close to the ten-year average, a period which includes the 2020 pandemic […]
Around this time of year people ask me if we Brits celebrate July 4th. I have devised a variety of ripostes to this friendly goading. School history classes never even reached 1776 – interminable hours were dedicated to prior centuries. Perhaps English historians concluded nothing much important happened 250 years ago… Of course, we do […]
Apparently, the senior executives of Exxon and Chevron weren’t the only ones worried about inadequate oil inventories causing prices to spike (see Is Crude At A Tipping Point?). The White House heard the message, and ships are once again moving freely through the Strait of Hormuz. The world is suddenly awash with oil, which by […]
Last week we were in Tampa and Orlando meeting with investors. It’s always a pleasure to see clients that have been with us for several years, because they’ve invariably had a positive experience. On the drive from Tampa to Orlando on I-4 we passed the exit for DisneyWorld, although sadly didn’t have time on this […]
Crude oil has so far not reached the heights expected by industry insiders, including senior executives at Exxon Mobil and Chevron. The reasons include China’s decision to stop building its inventories, which reduced demand by 3-4 Million Barrels per Day (MMB/D). Their high penetration of EVs has supported a shifting from gasoline to coal as […]
It has struck us for some time that crude prices continue to reflect an overly optimistic view about when normal shipping will resume in the Strait of Hormuz. There is no acceptable military solution available to the US. The Iranian threat will stop when Iran so decides. Nonetheless, every positive social media utterance from President […]
