There are several words that just drive me nuts thanks to 2020 and Covid. “Unprecedented” is one that should be totally stripped from the English language. In fact, let’s set up a jar and anyone that uses that word should pay $1 in an “Unprecedented Tax”. That might even pay for balancing the United States budget.
I have been talking about a unified front and plan to get the lowest kWh to all citizens of the world with the lowest negative impact on the environment. Seems simple doesn’t it? Well after over 20 years of failed energy policies let’s set a new goal. – Work and talk to each other towards getting to Carbon Net-Zero as soon as possible.
This week we were asked our opinion on directions that two large oil and gas companies are taking, and which is right.
Exxon is giving back to the investors, taking profits from oil and gas, and not funding their E&P projects. As a result, they cannot even keep up with replacing the standard decline curves on their properties to maintain profitability. Instead, Exxon is turning to an energy company with an uncertain future that impacts renewable energy and the markets.
Michael Writh, chairman and CEO of Chevron, said Monday several vital points in contrast to Exxon. He also says the plan to move to renewables is critical. Just turning off oil and gas will not help the environment nor their investors.
CNBC Published: Speaking to CNBC, Wirth explained that October usually sees a lull in demand between the peak summer months and the renewed need for energy during winter.
We need to navigate an orderly transition that doesn’t put economies, consumers and societies at risk,” he said.
Wirth described a “tension” between the desire to achieve decarbonization and the need for fossil fuels to drive the global economy, a friction he says will require a “massive investment” to resolve.
So what is the right path to renewable and Carbon Net-Zero? Whatever or wherever the course, it has to have several key points:
1: Quit printing money your country can’t cash. Bloomberg released a story this morning: “Funding the U.K.’s Green Transition comes at a price for savers”. Retail bonds are now available at .65% with a three-year commitment to pay for the migration to renewables. How is that going to work out? Would you diversify your portfolio to that?
2: Quit being a hypocrite – use less energy in your life and stop telling the less financially fortunate to live like you. The world cannot move to renewables without cheaper clean technology. Let’s lead the world in sacrificing some of our comforts to help them.
3: Energy is a commodity. Realize that. Germany and California are acclaimed to be the “leaders” on the move to renewable energy. Now they have the highest energy costs to their citizens in their respective markets. And their economies are being killed because of the energy policies.
4: Let’s pour all of the resources of the world into clean energy technology. This seems to be the biggest and best use of financial resources to get the lowest kWh to the consumers with the lowest environmental impact. For example, clean coal can be delivered cheaper with less environmental damage than the current wind and solar solutions. We will cover this in the upcoming weeks.
This is not about renewable vs fossil fuels, but rather how we can get to Carbon Net-Zero as soon as possible. Our twenty years of bad energy policies have just imploded and we have to work together moving forward.
Let’s pull together and “Spend Our energy moving forward together towards an answer.” – Jay
Stay tuned for more on our solutions and recommendations.
Buckle up, we are in for some interesting times ahead, and let’s be part of the solution together.
Send me your thoughts and I would like to hear from you about your thoughts on the current market.