January 2020, London. Pre-Covid19
Summary: “Unprecedented” supply increase in the face of demand destruction. Fueling the fire.
About the publisher: Richard Norris is a leading business developer and advisor to energy investors, developers, bankers and the public sector.
Summary: Society demands that oil be “kept in the ground” – lets try that and see what happens!
About the publisher: Richard Norris is a leading business developer and advisor to energy investors, developers, bankers and the public sector.Continue reading “Fuel Strike for Society”
Summary: Changes to fiscal terms and delays in licence renewals look likely to condemn Nigeria to declining production, following a path analogous to that of its regional challenger Angola.
About the publisher: Richard Norris is a leading business developer and advisor to energy investors, developers, bankers and the public sector.Continue reading “Nigeria to follow Angola off the production cliff?”
Immensely pleased to have been given the opportunity to speak at the Scottish Energy Forum at the historic Geological Society in London yesterday. I would like to thank the organizers, sponsors and the audience.
I guess it is not unusual to find snowflakes in winter.
* Students demand declaration of climate emergency and divestment from fossil fuel companies;
* College suggests turning off heating as a direct measure to help.
* Students reply: “This is an inappropriate and flippant response by the bursar to what we were hoping would be a mature discussion. *It’s January and it would be borderline dangerous to switch off the central heating*”
* Me: LMAO Surely that is exactly the point (on a global scale)…. and yet the irony of the reply appears to be lost on even the brightest and best….
“Old” energy sucks as an asset class, yet not investing in it will undermine the driver of growth (cheap energy) that allows other sectors to soar. No individual investor is incentivized to support the common good.
In game theory, the Nash Equilibrium, named after the mathematician John F Nash Jr. (of “A Brilliant Mind” film fame), is a proposed solution of a non-cooperative game involving two or more players in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy. source
To this we can add that the observation that such an equilibrium is often sub-optimal for all players, but as noted in the description, no player has any incentive to change. Players are “locked in” to a sub-optimal outcome.Continue reading “Brilliant Minds, Sub-Optimal Outcomes in Investing: Ignore Oil and Gas at Everyone’s Peril”
Summary: With a focus on “Greener, Cleaner and Cheaper” energy, we are overlooking the possible negative consequences of cheap energy. More expensive energy can be seen as a big negative as it will slow economic growth, but cheaper energy could accelerate degradation of planetary resources. Damned if you do, damned if you don’t?
Summary: Even in a “rapid transition” scenario the world will use over seven hundred billion barrels of oil in the next twenty years. This is more than 50% of the total oil produced since the inception of the industry in 1870. Since we have found and used most/all the cheap oil, inevitably the next 700 billion barrels will be more expensive. Peak Demand may be ahead, but “Peak Cheap Oil” is certainly behind us.