Downside?, page-369

My thinking is that energy (coal, oil, gas) prices remain elevated due to lack of investment. The world believes that fossil fuels will be replaced by renewables, the problem is that it will that longer than we all anticipate. Witness the decision of the NSW and Victoria Govt to negotiate to prolong the closure of coal fired power stations as they realise that there will be an energy (electricity) shortage. The NSW and Victorian Govt are not Robinson Crusoe in their thinking. Access to capital is drying up and that means that energy companies (fossil fuel related) need to self insure. They will need higher prices to self fund growth and meet increasing demand for fossil fuels and if they can't grow the productive base prices will be higher. Fossil fuels are a finite resource and need to be constantly replemished, new mines, new gas and oil fields.
Renewables can never be relied upon as base load power, they will need to be augmented by coal and uranium that can provide reliable and affordable base load power. Gas will act as the link between renewables and base load power depending upon requirements. More research is required on how to make carbon capture more economically feasible.