America’s midstream energy infrastructure, the pipelines that move U.S. energy supplies to market is crucial as we strive for American Energy Independence.

Renewables: More Capacity, Less Utilization

The U.S. Energy Information Administration (EIA) is generally apolitical – they’re not championing any single energy source. That may change under the new Administration, and they may become a shrill for renewables, but so far, they largely report data. Yesterday their website carried Renewables account for most new U.S. electricity generating capacity in 2021, highlighting […]

Asia Snaps Up Natural Gas

The cold winter currently being endured in north-east Asia isn’t just a boon for those hoping the planet isn’t burning up. It is setting a fire under local prices for Liquified Natural Gas (LNG). Because of the relatively high cost of moving LNG by tanker, regional price differences can be far wider than for crude […]

The Changing Pipeline Investor

The S&P500 (SPTR) had a strong decade, returning 13.6% p.a. from 2011-20. By contrast, MLPs had a lousy ten years, delivering –1.2% p.a. The reasons have been well documented on this blog and scarcely need repeating. The Shale Revolution induced overinvestment which led to excessive leverage. Distribution cuts followed, driving away many traditional MLP investors. […]

The Blogs You Liked, Part 2

Although we generally write about investing in midstream energy infrastructure, we find macro subjects interest our readers too. In April, not long after the market low, The Stock Market’s Heartless Optimism was popular, as any guide to the market’s direction was eagerly sought. We regularly use the Equity Risk Premium (ERP) to illustrate the relative […]

The Blogs You Liked, Part 1

Writers care what their audience thinks, and we monitor pageviews and comments to learn what resonates. For pipeline investors, a few months into the year it was looking like the mother of all bear markets. The sector had been persistently lagging the S&P500 since peaking in 2014, and pre-Covid the fundamentals were improving strongly. Fortunately, the recovery since then has repaired much of […]