Hmm it is. I thought I might bring this little gem out
(source The Absent Superpower. Specifically from an email that Peter Zeihan sends out periodically )
You can see that before shale, NG gas in America. followed the NG prices in the rest of the developed world. Now it dances to it's own tune. If Biden is true to his word and reduces the US shale drilling and exploration on the US mainland then we can expect the golden age of almost free natural gas to end. Shale, unlike traditional drilling has a high depletion rate. And the US has reduced drilling due to covid and carbon green concerns. Banks are less likely to fund new projects due to dollar green concerns. As the boomers retire and suck money out of the system, people will be less likely to invest without a good return. Something that has not happened lately with US domestic shale oil companies. TLDR; In my view domestic supply in the US is constrained for the next few years.
This is happening just when manufacturing balkanization is occurring between China and the US. The US Military is going home. Europe needs to stand on it's own two feet and is buying gas from Russia. And the US seems to be looking to be bringing it's manufacturing base back home. Even if "home" includes Mexico with it's cheap labour force. That manufacturing build out will require energy. TLDR; Demand for energy in the US is expected to rise.
This is all very well. But as cara pointed out. If BYE hits oil in the coming drill, share price goes up. If BYE has a duster, Share price goes down. And we will all hear boysy1 chuckling in the background.
BYE Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
