Ann: Senex announces sale of Cooper Basin business, page-105

Transition To Higher Energy Prices. The Energy Report 11/24/2020

by PHIL FLYNN on NOVEMBER 24, 2020 - 7:58 AM · in MARKET COMMENTARIES, PHIL FLYNN ENERGY REPORT

It looks like that the transition process is beginning to a Joe Biden administration and is already leading to higher energy prices.

Oil prices are up on a risk-on attitude as Janet Yellen, who never met a printed dollar that she did not like, will likely become Treasury Secretary and John Kerry as a climate czar is causing oil and gasoline prices to rise. Both Yellen and Kerry’s inclinations, as far as the markets are concerned, are well known. Janet Yellen, the noted policy dove, and Kerry, the climate change hawk, set the stage for the new energy of anti-petroleum agenda and more energy regulation. The combination of Janet Yellen pushing for more accommodation and John Kerry’s support for the Paris climate accord means that the outlook for energy price will be substantially higher over the next four years.

Kerry is an internationalist that will allow other countries to pollute and put the screws to U.S. producers. Kerry will look the other way when countries like China cheat on emissions and will not hold them accountable because he would not want to offend them. Yet if you are a U.S. company, get ready for fines and oppressive oversight. Shale bankruptcies will continue to rise and the odds of the U.S. regaining lost energy production from before the pandemic, now looks slim. Factories in the U.S. will start looking to build offshore where environmental regulations will be less strict like in China because they will be viewed as a developing nation.

So for investors this is a great opportunity, The Biden distractions will create a long-term bull market.