THE AI REVOLUTION NEEDS ENERGY
US natural gas demand is growing to supply data centers and LNG exports. We believe midstream energy infrastructure offers predictable cash flows to investors.
Not Yet A Crisis
It’s not easy to make the Persian Gulf safe for commercial shipping. On Wednesday a Thai vessel was hit by three “unidentified projectiles” near the Strait of Hormuz and caught fire. Several other vessels were hit towards the end of the week. In total 22 civilian ships have been hit in the Persian Gulf since […]
The Long Term Bullish LNG Story
The negative correlation between energy and the stock market that we highlighted last Sunday (see AI Moves The Energy Sector) continued last week, unsurprisingly given the news. We had thought global natural gas markets were more vulnerable than crude oil to conflict, and this turned out to be true. Qatar represents only 20% of global […]
Iran War Thoughts
The war on Iran is likely to have a longer-lasting effect on global natural gas markets than crude oil. Disrupting energy supplies from the Persian Gulf is part of Iran’s response. The President is acutely sensitive to the price of oil, and we can assume Pentagon war planners are focused on eliminating Iran’s capability to force prices higher. […]
AI Moves The Energy Sector
Forty years ago, when I was trading eurodollar interest rate futures, it was routine to respond to a sudden unexplained move in the market by calling the floor of the CME and talking to our broker. Caught up in the excitement of the loud heaving mass of brokers and locals in the pit*, he would […]
Midstream Dances To A Different Tune
The performance of midstream last year didn’t align with the fundamentals. This is clear when you consider the periods either side (2024 and 2026YTD). Last year, the sector lagged and many investors became frustrated with the underperformance versus the S&P500, which really means versus the big AI hyperscalers. In 2024 midstream investors grasped the need […]