Crude Oil Super-Cycle Just Beginning; Buffett Buys More OXY -- May 4. 2022

Clearly in a "crude oil super-cycle." 

WTI: tonight, 10:40 p.m. CT, May 4, 2022 -- $108.20. 

Warren Buffett telegraphed this during the Annual Meeting last weekend. 

His "quote" posted on the blog.

Perfect storm:

• energy transition is dead ("everybody" now realizes that)
  
• Putin's War: a lot of Russian oil is taken off the market 
• one-two-three punch: previously posted
  
• we have an administration in Washington (DC) that doesn't understand what's going on and will (purposely or inadvertently) do everything to kill the US oil industry
• this administration in place for three more years; three more years to exacerbate situation 
• windfall profits tax will exacerbate price of gasoline at the pump;
  
• US E&P under-capitalization (multiple reasons)
• financial institutions coordinated moving investments to non-fossil fuel companies
• capital being moved from fossil fuel to renewable energy, tech, healthcare
• fossil fuel out of favor with managed funds
  

Tonight: link here.

Remember: during 1Q22, Warren Buffett / BRK bought enough CVX to make it the third or fourth largest equity holding in the BRK portfolio. Now, more OXY. 

Link here.