Video Interview: U.S. Shale, Geopolitics, And Europe’s Crisis

Driving through Texas on a perpetually-hot August summer day, we passed vast ranch lands, pump jacks and oil derricks, and tens of miles of wind turbines in the Panhandle… on the way to New Mexico, where this tale originates. The irony is my Permian chronicles started in the summer of 2013 on an 11-hour road trip, from the north and ultimately through Pecos, Reeves and Jeff Davis counties on a visit to UT’s McDonald Observatory.

The DCEO story last year focused on the Midland part of the Permian Basin through Scott Sheffield’s Pioneer Natural Resources (PXD). This year, the story has its roots deeply embedded in the Permian’s Delaware Basin, as the account of one persistent oil and gas man, George Yates. I certainly didn’t plan it this way — the geographical, geological twin basins, of the Permian Basin, the U.S.’s crown jewel of oil and gas basins.

Interview about “Solving Europe’s Energy Crisis” and More

Link to YouTube video “Solving Europe’s Energy Crisis: Dynamics, Markets, Capital Flows” link.

This time in energy seems like the renaissance of the 15^th and 16^th centuries where Copernicus said the Earth rotated around the Sun— contrary to the belief of the day (and also flat-thinking dominated). The Earth does rotate around the Sun. It’s spherical, but in terms of the physical reality, the earth’s surfaces and activities are really jagged. One extremely smart physicist opines about its nooks and crannies, cracks and crevices. The Russian invasion of Ukraine exposed the lack of linearity in the energy transition, the crevices and cracks. In a discussion about the implications of all of this documented, Yates says we need to re-think our assumptions on energy, and how we arrived at this point, to see the path ahead. Basically, this means rewriting the script. In an Oct. 8 chat, we step back from our previous discussions that became the story and reflect about the meaning of events and a Q&A I worked on. [Video here.]

Alongside the research and interviews for the feature, a panel was held at the DCEO energy awards event on Oct. 20, “Geology, Geopolitics, and Capital.” The introduction to my “script” was ripped up in the weeks and days preceding it as events and outlooks became altered, hazy in fact. The Russian invasion turned to constant war with its knock-on effects of energy and food insecurity. The Fed raised interest rates to curb inflation in March and onward. Markets became more volatile. Governments changed hands in the UK, and elections on the Continent reflected frustration with high energy costs and leadership.

The investable energy universe is vast. Of late, the macro environment has dominated my outlook. In the interview, I try to be a wayshower to investors, as I do not have all of the answers to this beyond-vast energy space. Players are mentioned. Information resources are cited. The energy mix is conceptualized a little.

PS. I reference Exxon Mobil (XOM), Chevron (CVX), Devon (DVN), Pioneer (PXD), Hatfield of (AMZA), Matador (MTDR), EOG Resources (EOG), Apache (APA), (BP), TotalEnergies (TTE), Shell (SHEL), (OXY). Michael and I discuss (NYSEARCA:XLE), (NYSEARCA:UNG), and (QQQ) behind the scenes.