We are coming to you from Houston following my participation earlier this week at the Aspen Institute’s Winter Energy Forum. This week we provide thoughts on Iran and the latest Middle East conflict. As usual, our focus is on what the long-term implications could be for companies and investors. Our ten initial long-term takeaways are as follows:
- Super Vol remains our commodity macro mantra.
- Middle East turmoil now as relevant to LNG as crude oil.
- Overhyped oil glut call.
- Energy source/technology diversification is a must for countries.
- Renewables and other new energies will continue to gain traction.
- The case for coal.
- The case for Canada.
- Use unexpected free cash flow to reinforce fortress balance sheets.
- Undisruptable oil, gas, coal, copper, and critical minerals.
- Commerce over chaos and a brighter future for the Middle East.