Energy Prospectus

The "reality" of the real world just doesn't match up with AOC's dream world.

JP Morgan: Don’t Expect A ‘Shock’ Transition In Energy Markets
https://oilprice.com/Energy/Energy-Gene ... rkets.html

"The energy transition dream clashes with a reality in which the funding and behavioral changes necessary for deep decarbonization of the global energy system are grossly underestimated. The world still depends a lot on fossil fuels, and even with record growth, renewables are solving just a tiny part of the carbon footprint problem—electricity generation. But electricity accounts for just 18 percent of the total final energy consumption globally, JP Morgan notes."

Conclusion by Michael Cembalest, Chairman of Market and Investment Strategy for JP Morgan Asset Management

The Energy Transition Needs Big Oil

Due to the huge—and grossly underestimated— challenges to deep decarbonization, “the companies we all rely on for dispatchable, thermal power and energy will need to survive and prosper until we get there,” Cembalest writes.

The bank doubles down on its bullish call for oil and gas from last year and recommends investors to stick with the industry.

“Big Oil” return on capital fell to single digits by 2016 due to excess competition; we expect these returns to rise back to 1990’s levels of 10%-15%,” JP Morgan says.

Finally, “peak oil demand forecasts may end up being just as wrong as peak oil supply forecasts were a generation ago,” the bank noted.

Forbes: The Obvious Delusion Of ‘No More Natural Gas’

"Whether coming from politicians, ESG insiders, or competing industries, the assertion that natural gas demand is somehow going away, and investments in new supply are thus unwarranted, is demonstrably false."

JP Morgan, for instance, just reported that the “energy transition” is likely to take much longer than many want to admit - hugely important because the investment bank itself, at least to me, faces tremendous climate pressure to ensure us something different.

While wind and solar power are surely growing in importance, their ability to displace, not just supplement, more reliable natural gas power is proving to be more rhetorical than actual.

The world is now sunk in a natural gas shortage and prices are spiking, a prime indication of just how much the world’s go-to fuel goes under-appreciated by the media and politicians alike.

Given that gas is integral to power and industrial sectors, high prices are weighing on the world’s economic recovery from Covid-19, even for the world’s most developed nations that promised to “get off gas” a long time ago.

Read the article at the link below to see why Germany has backed off their commitment to wind & solar because they wised up and now know the transition is too expensive and won't meet their energy needs. Germany will be forced to import gas from Russia via pipeline and LNG from the U.S. for decades.

https://www.forbes.com/sites/judeclemen ... 6a85ed138e