This week we dive into the global macro picture around the power super cycle theme, what we are calling Power Surge! There is a lot of attention especially here in the U.S. about the domestic opportunity set. We share that enthusiasm but view the power super cycle as a global theme as well.
Some of the major questions we hope to address either in this video podcast or in future weeks include: Does a power super-cycle imply an acceleration in global GDP growth like we saw 20 years ago with the China/BRICs expansion theme? Will a power super-cycle lift all energy boats or just some? What might be the drivers of different energy sources doing better or worse than expected in the coming decade? And finally, what are the best ways for corporates and investors to play the power super-cycle theme?
This week we focus on: (1) global trends in power versus oil demand; (2) regional variations in growth. Our key messages: (1) the idea that we will have a power super-cycle but plateauing oil demand is non-sensical…both will grow (2) U.S. appears to be joining notable emerging markets as a pro-growth region.