The Energy Crisis and the War in Ukraine

TL;DR

The pushback against the energy business reshoring may not win, as politically stable countries like Canada and Norway are better alternatives to relying on unstable nations like Venezuela and Iran for oil production.

Transcript

what do you think about the idea that we might see some more re-shoring of the energy business at least now the administration is pushing back on that idea do you think that that will win the day or do you think that eventually they're going to relent and we're going to see more production coming out of the u.s or political or i should say politica... Read More

Key Insights

• 😀 Reshoring the energy business faces challenges due to the availability of politically stable alternatives like Canada and Norway.
• 🛢️ The storing of oil in Venezuela and Iran suggests that there is a demand for it at better prices in the future.
• 🇺🇸 Fracking in the United States has not picked back up due to high costs and regulatory concerns.
• 🛢️ The United States faces energy problems, such as the lack of pipelines to deliver oil from Russia and limited pipelines for transporting Alaskan oil.

Questions & Answers

Q: Do you think the pushback on reshoring the energy business will be successful?

The pushback may not be successful in the long run, as politically stable countries like Canada and Norway offer more favorable options for oil production.

Q: Why hasn't fracking picked back up in the United States?

Fracking hasn't picked back up due to high costs and the need for a better regulatory environment. There is also a concern about potential government restrictions on selling or delivering the produced oil.

Q: What are the major energy problems in the United States?

The United States has significant energy problems, including a lack of pipelines to deliver oil from Russia to the western part of the country and limited pipelines for transporting oil from Alaska. This impacts the west coast of the United States and Europe, where a large percentage of energy use relies on Russian exports.

Q: Will there be a new Cold War between blocks led by China and Russia and the West?

There is a potential for a new Cold War, especially if China and Russia form a strong alliance. The scale has changed since the previous Cold War, with China now having a significant economy. Supply chains and commodities will play a crucial role in determining the outcome.

Summary & Key Takeaways

• The current administration's pushback on reshoring the energy business may not be successful, as politically stable countries like Canada and Norway are more favorable options.

• The oil in Venezuela and Iran is not going unconsumed, but some is being stored for future sales at better prices.

• Fracking in the United States has not picked back up due to high costs and the need for a better regulatory environment.