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Tuesday, December 20, 2022

Global Energy: The 21st Century Is America's Century Again -- December 20, 2022

I am unable to think of one country or one region that is in better shape than the US, in almost any arena: energy, industrialization, telecommunications (with the exception of South Korea, perhaps, Covid-19, housing, public health / medicine, military, financial. And then combining any of the above, no other country or any other region comes close. 

With regard to energy, this from the blog, October 9, 2013 -- nine years ago:

Energy: top story over at oilprice right now: will Buffett bet big on oil again in 2023? By Alex Kimani one of the top three contributors to oilprice. Kimani has five main points; I find #5 most intriguing:

[The analyst] makes a point that OPEC+ is now more comfortable with oil trading above $90 per barrel as opposed to the $60-$70 range they accepted in recent years. 

The energy expert says this is the case because the cartel is less concerned about losing market share to U.S. shale producers since the latter have prioritized payouts to shareholders instead of aggressive production growth.

[I bet Warren Buffett loves that.]

The new stance by OPEC+ offer better visibility and predictability for oil prices while prices in the $90 per barrel range can sustain strong payouts via dividends and buybacks. Given these factors coupled with fears that a recession might hit in the coming year, Buffett and the investing universe are going to struggle to find a more attractive sector to park their money in 2023.

Yes, find a better sector to "park" one's money.

By the way, ESG? Buffett / Munger, no doubt, have no interest in ESG.

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