ICLN - Energy Transition Intricacies: Dynamics And Investment Themes

Summary

• The Inflation Reduction Act, funding many cleaner energy mix options, comes with mixed blessings as an investor.
• Old energy sources don't die, they just get added to, as said by an oil major economist. Minerals' requirements are large in the new energy era.
• U.S. LNG has tailwind fundamentals; Europe is increasing new import facilities.
• Change is hard, and tradeoffs abound in this transforming energy landscape.
• Government will need to partner more with "the market" for better capital allocation decisions. In Europe and the U.S., policy reversals make business think twice.

After the Federal Reserve Bank energy conference, and in her deeper research about the energy transition's contours, Michael Hopkins of Seeking Alpha interviewed Jennifer Warren. It's the final installment about the Fed conference takeaways, but advances thought relative to current energy dynamics.

Video Interview: Intricacies of the Energy Transition: Renewables, U.S. Industrial Policy and Geopolitics

Below are some of the top-level thoughts connected to the slides:

Old energy sources don't die, they just get added to. Critical minerals will be more demanded depending on the energy mix choices made.

U.S. LNG is sought after in Europe and China. Texas will be playing a significant role. Europe will increase LNG imports 34% by 2024.

U.S. oil and gas firms are to benefit from Europe's LNG diversification in natural gas supply.

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