ENERGY WORD ALERTS JUNE 1, 2021
(Just the trades, ma’am, just the trades)
So – the entire Green world is a – twitter with the ‘destruction’ , ‘annihilation’ and otherwise complete coming demise of big oil in the last week.
This celebratory moment for the Green New Deal crowd was spearheaded by the two events on either side of the Atlantic, one in a Texas boardroom and the other in a Dutch courthouse.
First, Exxon was raided by activist group Engine One and lost a proxy war, causing the Exxon board to take on two new – environmentally more ‘interested’ members, intent (I suppose) on getting Exxon to forget that they sell dirty oil and gas for a living.
Next, the Dutch courts responded favorably to a consortium of environmental groups to mandate a new emissions target for Dutch mega-cap Shell. The courts have now ordered Shell to plan on reducing their emissions from fossil fuel procurement 45% from current levels, although Shell had already planned on reducing them 20% in that time anyway – Not good enough, say the greenies.
This Week’s oil trader’s 10-second takeaway: Laugh at the miserable timing and ineffectiveness of environmentalists – and BUY OIL
Here’s why this last week’s energy news is worthy of a nice hearty chuckle:
First – NO ONE is going to stop Exxon from carrying out their plans on energy. This is a company that plans 5 years into the future – ALL THE TIME. They are committed to US shale and carbon capture technology to augment their natural gas assets and appease the Greens. That ain’t gonna change.
Second – and this applies to both majors, Exxon and Shell – and the rest of the them soon to be under similar attack:
WHY WOULD YOU CHANGE DIRECTION NOW? You’ve just endured the worst six-year stretch in the history of fossil fuels – Gluts everywhere, overproduction from small shale start-ups, mismanagement in OPEC, rampant Iranian and Russian cheating on production limits, et cetera, et cetera.
AND NOW? NOW – you’ve got the independents in freefall, gluts disappearing, pandemic about to end, supplies dwindling and prices on the rise.
NOW YOU WANNA GO GREEN AND FORGET ABOUT FOSSIL FUELS?
NOW? - WHEN YOU’RE ABOUT TO HAVE THE BEST THREE YEARS SINCE 2003?
(BTW - and leave the Iranians and Russians with the last laugh?)
uh – I don’t think so.
The trades:
Just one this week (although I could make this simple and say just buy Exxon and Shell –
I had hoped the two would get pummeled in the Green hype hoopla. Sadly, they didn’t, or at least not enough to make them outstanding value – seems the markets know better than the greenies) –
and that one stock for this week is –
OOPS - can’t give you THAT — gotta save something for the paying folks………..
In fact, why don’t you BECOME one of the paying folks? Only $25 a month.
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dan@dandicker.com