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All hell is breaking loose in the energy markets.
In Dec 2020 Facebook had a stock market valuation of 1 Trillion. EQT, the US biggest nat gas producer had a stock market valuation of 4 billion.
Facebook’s only product is their user’s personal information, a lack of shame and was celebrated for their manipulation of national politics. EQT provided 2.5% of the nation’s energy needs. And was under attack by the same people for putting inert CO2 into the atmosphere.
Europe is worse. Enron global.
Screw these people.
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Neo, thank you for calling attention to the “tail wags the dog” circumstances we now find ourselves in.
Our DC leaders are regulating the hell out of energy businesses and adopting a relatively hands off approach towards social media. They decry the prior administration’s go it alone policies and adopt that exact approach with respect to climate change. Let’s go it alone, let’s make our economy less competitive and let’s be real careful that we leave China and India fat and happy on the side lines.
Here's a toast with one last pour, may it last forever and a minute more;
Good fortune seems to you have sung, to live and love way past long -
Yea, it’s pretty nuts. I am pretty cold blooded about what’s going on. Self interest of course.
I’m watching agribusiness and commodities closely. Here’s what I’m seeing. The 3 main components of agribusiness are usually seeds, chemicals and pesticides. Right now you have to add supply chain, bad weather, and energy. Prior to the big energy spike lately, the prediction for 2022 US farmers was very tight margins. It looks like the biggest producer of fertilizer, China is way down on production. They can’t get their products to markets. The US makes of lot of nitrogen and that is down due to supply chain and they can’t ship out of New Orleans as they were due to the hurricane. So importers overseas can’t get what they need. Gasoline is in short supply in Europe, especially England. They are short 100,000 drivers. And last night Russia cut nat gas production by 57% trying to put the squeeze on. Brazil has not planted their corn crop yet due to drought and they export a lot to China. If you want to throw in California’s drought ,Lake Mead and Lake Powell water levels, things look to get interesting. For sure, margins for US farmers look to get even tighter next year and they will simply cut back. US food prices up up up and shortages. Oil to $100 or more soon.
How are the planners going to fight it? They are praying for a warm winter.
This is what a green economy can look like.
Get a helmut. 🙂
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China is facing several very major problems in several basic areas of their nation’s ability to function. The attached discusses the severe water shortage currently going on which is expected to get much worse. The video mentions climate change, but that is probably only a rounding error effect. A passing reference is made to the growing population that will increase demand. That is not true. China is going to face a debilitating shortage of workers in the foreseeable future. Their demographic age mix is wildly distorted by the “one child policy” of the past. But that is a topic for another time.
The Chinese leaders have mismanaged their existing water supplies and have dramatically worsened the looming shortage. There is a better video further below, but it is over 20 minutes and I didn’t figure folks here wanted to spend that much time. People who tout China as a shoe-in to surpass the U.S. in virtually every measure, have not examined the plethora of problems the country faces; many far worse than any lying ahead for us.
Longer video:
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“The 3 main components of agribusiness are usually seeds, chemicals and pesticides. Right now you have to add supply chain, bad weather, and energy. ” You missed one here, but got to it later. Water.
You can’t drive I5 and not notice all the signs decrying the government’s failure to provide adequate water to deliver produce to a hungry nation. Lot’s of issues for sure, but the fact that No Cal pumps a ridiculous amount of water to So Cal so Angelenos can wash drive their driveways galls me.
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Water. You can’t drive I5 and not notice all the signs decrying the government’s failure to provide adequate water to deliver produce to a hungry nation. Lot’s of issues for sure, but the fact that No Cal pumps a ridiculous amount of water to So Cal so Angelenos can wash drive their driveways galls me.[/quote]
Good I5 anecdote.
Maybe that’s why Governor Handsome is so popular. Easy to pull the lever on the propaganda machines. It’s so hard to become an educated person in this environment.
I don’t care much anymore for the unsolvable problems of strangers. I’ve gone to “do these problems have real value to me”? I’ve turned most of it off and have gotten back to my life and trusted friends.
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Neo, following on your energy market thoughts, this is a lengthy read that provides an interesting summary of where we are with the long term transition to “clean energy”. As in most things there is real risk if we underestimate the ability of politicians to screw things up.
https://www.nationalreview.com/2021/10/the-energy-crunch-spreads-but-climate-campaigners-press-on/
Here's a toast with one last pour, may it last forever and a minute more;
Good fortune seems to you have sung, to live and love way past long -
Good in depth summary. Greenflation.
I cannot comprehend how we go from energy self reliance (to include reasonable transitions to green solutions) to where we are now so fast. How and why did we piss it away? The gyrations are staggering.
Was with a friend this week who is a life long citrus grower in Florida. He’s locked into a 3 year contract for his crop. He told me that he used to pay $300/ton for granular fertilizer but now it’s pushing $800/ton. He uses massive amounts. His already tight margins are shot. All about how much he can limit his losses now. Hoping he can weather the storm but it looks bad already for next year due to production cuts in fertilizer both in US and China.
Nat Gas fiasco. Sky high prices. Why? Your article spells it out. It gets worse. A by product of nat gas is CO2. CO2 is used by meat processors to stun animals before slaughter. Without it the process slows way down. And you need CO2 to make dry ice which processors us to ship their output by all transport means. This itself slows down everything back to the farmer who has to cut to make his number. This is happening across Europe.
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