FANG - Eclipsed: Energy Grids Infrastructure And Innovation

2024-04-09 05:30:00 ET

Summary

• The eclipse of April 8 reflects a diverse energy mix and the grid dynamics of a low-carbon transition.
• The Texas ERCOT grid highlights the challenges of decarbonization and the need for creativity and innovation in the energy sector.
• Solar power generation peaked before the eclipse, while natural gas continued as a dominant source of energy; battery storage played a minor role.
• Recent mergers and acquisitions that consolidate the oil and gas industry offer nuanced investment rationales and value propositions.
• In Texas, the combination of energy exports, semiconductor facilities, and infrastructure networks highlights macroeconomic potential.

In speaking with Seeking Alpha 30 minutes after the solar eclipse in North Texas, energy developments around Texas and the "Triangle" reveal interesting trends. The Texas Triangle is the area of Dallas-Fort Worth, south to Houston, and then west to Austin/San Antonio, roughly $2.5 trillion of GDP. Aside from energy mix dynamics, top of mind is that the set-up for oil and gas investment is fundamentally good. To address global demand and more sustainable profitability, the recent $234 billion in mergers and acquisitions consolidates an industry that is refortifying and finding new value propositions. This theme will continue....

For further details see: