5 Reasons Why Big Oil Is Here To Stay

[Tom Kirkman + 8,860]

Thoughtful article from the Oil Price main news site.  And the writer penned my new favorite label for climate panic screechers, "bloviator de jour".

5 Reasons Why Big Oil Is Here To Stay

The investment case for oil companies has been under attack recently. Climate change activists know that the dividends paid by the largest of these companies are among the most lucrative and stable over time, of any payers in the marketplace today. Further, they know these attacks will receive wide coverage precisely because of the criticality of the dividend stability to these companies stock price. It’s a two-fer for these folks. The only thing is…it isn’t true.  ...
 

... "Sustainable" forms of energy are all the rage these days. You can’t watch a money show without hearing from the bloviator de jour about how “Green Energy” will replace traditional hydrocarbon sources in about ten-years or so. Among these worthies are the CEOs of major institutional holders, like Blackrock or Norway’s Sovereign Wealth Fund and other large banking and fund management companies. These leaders will freely admit they are moving toward divestiture due to the political narratives regarding climate change, stating it as a fact. The truth is they have no rational basis, but are rather yielding to the out-spoken minority “stake-holders,” who are demanding action on their part to divest “dirty energy sources.”

As noted above in this article, we will take a closer look at the investbility of some of the biggest dividend payers on the planet. In doing this we will look past the splashy headlines that the CEO’s of these companies garner in watering-holes like Davos. Get ready for some real analysis, and prepare to sleep well at night knowing your retirement portfolio will be there when you need it.  ...

 

[Meredith Poor + 894]

This article makes a whole bunch of classic mistakes regarding commodities.

'climate panic screechers, "bloviator de jour"' exposes the name calling typical of people that are pounding the table rather than carrying on dispassionate discussions. Entertaining, but also exposing the character of the writer.

There is nothing sacred about any particular commodity, whether it is oil, gold, wheat, or water. Commodities don't know who owns them, and prices reflect current realities rather than the opinions of bloggers. If coal is worthless, mines shut. If oil becomes worthless, wells shut. If someone tries oil blackmail and no one cares, then it's possible that the oil market is oversupplied and removing one source simply props up the market.

Anyone doing a keyword search on CdTe (Cadmium Telluride) would run into an article published in the last few days about a method of creating this material that is significantly cheaper than current production processes. If this reduces the price of CdTe solar farms by 25%, it will run natural gas power generators out of business in the US market.

The so-called 'million mile battery' might last 50 years if annual use is 20,000 miles, which is on the high side for most cars. If the batteries lasted 30 years in normal duty cycle they would match the life expectancy of 'conventional' coal, natural gas, or nuclear power plants.

None of this is 'in the next ten years' - it would start shutting down fossil plants by the end of this year. Oil's use would be increasingly restricted to jet fuel and perhaps long range ships. Both of these markets can be services by 'air to fuels' conversion via renewable energy sources. 'Oil' might remain, but this should be viewed as distinct from mineral extraction via wells and pumps.

[Rob Plant + 2,755]

1 hour ago, Meredith Poor said:

Anyone doing a keyword search on CdTe (Cadmium Telluride) would run into an article published in the last few days about a method of creating this material that is significantly cheaper than current production processes. If this reduces the price of CdTe solar farms by 25%, it will run natural gas power generators out of business in the US market.

Thanks Meredith I hadn't heard of this technology before, sounds like it could be a game changer for solar.

I think this is the article

https://www.sciencedaily.com/releases/2020/01/200127134815.htm

 

[Meredith Poor + 894]

30 minutes ago, Rob Plant said:

Thanks Meredith I hadn't heard of this technology before, sounds like it could be a game changer for solar.

I think this is the article

https://www.sciencedaily.com/releases/2020/01/200127134815.htm

 

This illustrates the difference between 'talkers' (activist organizations raising money with wonderful sounding mission statements) and 'doers' (laboratory researchers in actual labs with actual understanding of physics and chemistry creating actual new technology). People that are wasting their time making fun of talkers are most likely unaware of or ignoring the doers.