The following sheds some light on how delusional resource intensive the transition to the green economy is.
Q4 2021 hedge fund letters, conferences and more
But wait, there’s more:
Despite what the pointy shoes are saying, the whole “green revolution” is anything but green. In fact, they’re bound to do the following:
- Destroy the environment
- Create shortages
- Destroy free markets and price discovery
- Increase the cost of living
- Impoverish people (unless you sit on the boards of “green” companies)
Chris dedicated an entire article to this very topic (and how to capitalize on it) back in 2020. It was — somewhat ironically — soon censored by the internet overlords at Facebook, but you can still read it here. It’s even more relevant today than it was two years ago.
OIL TO $200?
OIL TO $200?Speaking of shortages and increases in cost of living…
We’ve been saying for some time now that oil prices are headed one way (and it’s not lower). Business Insider explains why it’s a near certainty now:
Russian oil exports are crucial to global supply, and there are no sources that can compensate for the millions of barrels the country contributes, OPEC’s secretary general has said.
The US is considering whether to ban imports of oil from Russia over its war on Ukraine, and there are fears Russia could redirect its volumes in response to Western sanctions. That has prompted debate as to whether there are alternatives to Russian oil on deck.
“There is no capacity in the world that could replace 7 millions barrels per day,” OPEC chief Mohammed Barkindo told reporters at the Ceraweek conference, according to Reuters.
Now, you might say, “Surely, the West could, at least over time, make up for this shortfall.”
Normally, we’d agree with you. But as we mentioned in a recent Insider Weekly issue, this time is indeed different:
We recall the great bull market in oil from 2003 to mid 2008. It was a little different back then as increases in oil prices were met with “proportionate” increases in capex spending.
However, over the last five or so years there has been a drought of capex spend, as all the bankruptcies in the oil and gas services sector would testify. We get a good pictorial representation of this with the differential between Brent and NOV (the old National Oilwell Varco). NOV is a good proxy for capex spend as it supplies oil and gas equipment and services to oil companies globally. Look at that “gap” — it’s (capex spend and the stock price of NOV) going to play catchup!
Oil at $150 or even $200? Don’t laugh as there just isn’t spare capacity to be bought online to make up for the Russian short fall due to the “capex freeze” over the last few years.
We wish it wasn’t so but it’s hard (if not impossible) to look at the facts and numbers and come to a different conclusion.
Read the full article here by CapEx Team, Capitalist Exploits.
