Blog
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.
The Good News On Oil
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 […]
Is Crude At A Tipping Point?
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 […]
Still Not High
Although drivers are feeling it at the pump, crude oil prices and therefore gasoline have so far not approached the most dire predictions. We’re enduring the worst supply disruption in history in terms of volume, with an estimated 500 million barrels having been drawn down from global stockpiles. Moreover, it’s become apparent that Iran’s asymmetric […]
Reporting On The EIC Investor Conference
Last week SL Advisors partner Henry Hoffman was at the Annual Energy Infrastructure (EIC) CEO and Investor Conference in Ventura, FL. Such events provide an opportunity to meet the executives of the companies we’re invested in. It’s important to avoid being too sold on their prospects – especially now when we have a constructive outlook on the sector. So, Henry brought a jaundiced eye and detailed questions to […]
The Return Of Inflation
Last week’s inflation print supported the value of midstream energy in a portfolio for preservation of purchasing power. We’ve noted this recently (see A Healthy Correction last paragraph). The most recent 3.8% CPI reading is driving longer term inflation expectations higher. Incoming Fed chair Kevin Warsh has his work cut out for him satisfying both […]