The state of play in energy markets is challenging to disentangle. Jay Hatfield and I analyze the fundamentals and dynamics in global energy and the energy transition.
(I may elaborate more on this post later. I’m working in realtime.)
In an October 4th interview, Jay Hatfield, CEO and CIO of InfraCap Ltd., and I revisit global energy markets in advance of the DCEO energy edition happenings later in the month. Highlight timestamps are below the video.
State of energy play: Sticky demand, fungible commodities and the mix
Themes:
Prices not reflective (1:30)
Oil market correlations (2:29)
Sticky demand (3:10)
Natural gas world (5:20)
Steady US production (6:30)
Fungible energy (7:15)
Substitution of all energy (10:20)
Arbitrage (11:40)
Gas supply to Europe? (15:15)
Investor sentiment change? (18:15)
Status quo (20:00)
Government subsidies, Inflation Reduction Act (21:50)
Economics rule (22:00)
Carbon solutions (22:30)
Carbon tax efficiency (28:00)
Don't worry (29:30)
Sanctions not effective (31:15)
Ignored key dynamic of seasonal factors (33:00)