Just another observation on how the timing of all this has...

Just another observation on how the timing of all this has played out. A few things have fundamentally changed how things operate since I first invested in EXR. Those things are Covid, the Russian invasion of Ukraine and Chinese Wolf Warrior diplomacy.

Covid and the Chinese go hand in hand. First of all it was their gift to the world, but secondly they've been causing major conniptions in their economy based on the ridiculous way they are handling the containment of the virus. Their assertive diplomacy where they caused major disruption across suppliers of various goods and services, including significantly Australia, has backfired spectacularly with Australia and others finding alternate markets, and China finding themselves short of necessary resources and causing unnecessary inflation, particularly energy price inflation. Mix in these crazy lockdowns and we're seeing the prior to unheard of demonstrations and signs of civil unrest.

Not surprisingly this has caused a sudden thawing in relations between Australia and China and Xi seeks to mend the fences that he'd been happily breaking.

Then throw in the Russian invasion of Ukraine which has exposed the weakness of Russia, the folly of wars of aggression, revealed an unhealthy dependency on Russian energy and exposed the inherent weakness of authoritarian regimes who deal with contrary voices by killing them. The consequences for authoritarian leaders has often been quick, violent and ruthless.

When Lenin said every society was three meals away from chaos he was as right then as he is now. With the Chinese they will not give up their economic liberation for the vanity of one man - any more than they'll starve for him.

So where does this leave EXR. Pumping gas next to a market which appears to have seen the light that they need to play better with others to tighten their own grip on power. Outwardly thawing relations have become necessary with the suppliers of that energy, and some relaxation of their own internal Covid rules (and the need to stimulate their economy) will follow.

Finally, the folly of invasions of vanity can reveal weakness, not strength and can result in your own isolation and potential demise, perhaps not what you had in mind.

All of these things may add up to the benefit of EXR supplying gas and green hydrogen over short supply lines to a massive market - particularly when seen through a medium term time frame. I think things are looking better now than they've even looked for EXR.