Speaking Of Popped Bubbles -- August 5, 2024

Locator: 48332NATGAS.

Tag: natural gas, EVs, bubble, bubbles

Speaking of bubbles, from yesterday.

Cheap natural gas will destroy solar, wind.

Today, link here. Green energy flops ... in Europe!

I don't know if folks have been following the story, but for the past year -- maybe longer -- the natural gas story has been truly staggering. 

The US, particularly, is absolutely awash in oil and it could be a whole lot "worse."

This is just the tip of the iceberg, as they say, link here.

And then we have the RBN Energy story today with regard to the Diversified Energy Co. Posted earlier:

RBN Energy: Diversified Energy Co (yes, that's a thing) plots growth through culling, harvesting mature gas wells.

The term “exploration and production company” has been widely used for only four or five decades, but the activities it represents have a history that dates back to the first oil well drilled by Edwin Drake in Titusville, PA, in 1859. Ever since that world-changing event, discovering and developing new sources of oil and gas has remained the industry’s passion, exemplified by wildcatters and, more recently, by the technological wizards of the Shale Revolution. To this day, every major public upstream company still invests in finding and developing reserves — except one. In today’s RBN blog, we examine the unique approach taken by Diversified Energy Co., which has grown substantially by ignoring the “E” part of E&P.

EVs: another bubble that already popped ... but it's getting worse (assuming a "popped bubble" can get worse). Link here.

The EV industry has been set back at least five years, after Ford's most recent quarter, and the news that VW is likely to shut down an EV manufacturing plant in Belgium (a small country in Europe). 

The EV industry should by a lot farther along that S-shaped curve by now, but the industry is nowhere near the entry point of that S-shaped curve. Reminds me of failed middle school science fair projects. 

Speaking of which: F will drop below $10 / share at the opening. But that's still a whole lot better than $4.33 on March 20, 2020. Trump was president then, if I recall correctly. Talk about an incredible buying opportunity back in 2020 and now .... it looks like another buying opportunity ... for those with a rolling 30-year horizon.