Renewble Energy Advocates Clearly On The Wrong Side Of History -- October 6, 2022

Poster child for the confused: the Biden administration.

In the US natural gas is trending toward $6; the price of natural gas is coming down in Europe; and the Europeans are now fully (100%) stocked with natural gas for this winter. The naysayers that suggest it will be worse in 2023 - 2024 are wrong.

There is no shortage of natural gas. It is simply a logistical challenge and a pivot from one energy source to another in less than a year. Two years from now, it's a non-problem.

And when it comes to "where" that LNG is going to come from, it's going to be from only a few countries: the US, Qatar, and perhaps, Australia, Norway, and a handful of others.

LNG:

• global LNG exporting companies:

Qatar wants bragging rights:

UK, Norway, and Qatar:

Renewable energy:

• for investors, not a lot of good news for those choosing wind / solar over oil / natural gas
• how many stories have you read lately about countries rushing to sign renewable energy deals with GE, Siemens?
• this is what those on the wrong side of history are seeing: link here to the best contributor over at oilprice.com.

General Electric is laying off staff at its onshore wind power unit as part of a restructuring that came in response to the underperformance of the business. 

The company will reportedly cut its U.S. onshore wind workforce by 20 percent. 

GE’s onshore wind power business has been troubled by rising raw materials costs, weakening demand, and supply chain snags. The weaker demand came in response to the expiry of renewable power tax credits that made wind and solar cheaper than most alternatives.

For investors: it's an open-book test.

XOM:

• XOM signals strong 3Q22 earnings;

• strong earnings, Charles Kennedy:

Exxon expects to report strong financial results for the third quarter of the year after smashing previous profit records in the second quarter on the back of the oil and gas price rally. 

Exxon could book a third-quarter net profit close to its second-quarter record of $17.9 billion. 

Average oil prices in the third quarter were $98 per barrel of Brent, which was substantially lower than the $109-per-barrel average in the second quarter, but still high enough to boost profits.

Today's ticker: