Slightly disappointing jobs data may have taken center stage Friday morning… But no matter where you channel-surfed across the financial media, everyone had something to say about energy markets…
Eventually, they’ll have to acknowledge what we discussed Thursday as we head toward a global energy crisis in 2021.
CNBC trotted out a picture of a gas pump, tying it to inflationary pressures…
Source: CNBC
And Bloomberg threw out articles on Environmental, Social and Governance investors and how WTI crude oil topped $80 for the first time in seven years.
Source: Bloomberg
But energy and ESG requirements aren’t just on the minds of retail investors or financial media pundits.
In fact, I spent the better part of my morning on a conference call with nearly a thousand institutional investors talking about how blind adherence to widely variant restrictions actually prevents the world from achieving its climate goals.
Steering Ourselves Into a Global Energy Crisis in 2021
Without investment, any extractive operation — whether it’s a coal or gold mine — will produce less and less material over time.
When that happens at scale — say, when the entire world thinks fossil fuels are evil — then you eventually lose so much supply that it can’t meet demand.
That’s exactly what’s happened with coal and now natural gas over the course of the past decade.
And just when we really need them… they’re not available.
This is going to be a theme you hear again and again in the news over the next four to six months as this global energy crisis rears its head.
And because of that, this week’s free trades on natural gas and coal — both up as much as 6% thus far — aren’t going to be the last you see on those sectors.
Source: Bloomberg
I’ve spent almost my entire career in and around energy markets, and I’ve never seen opportunities this overlooked.
We’ll be sure to examine several of them as this global energy crisis progresses, so stay tuned… These next few months are going to be interesting.
Maybe even scary…
All the best,
Matt Warder
Fortune Research
