Jun 29, 2022
Summary:
Energy prices have skyrocketed. Who is to blame, and are they going
to improve? Jeff Petrash, a lifelong participant in the energy
system, chats with me in this episode about natural gas and its
centrality to today’s energy usage. Current natural gas prices are
the product of multiple factors, including the pandemic and the war
in Ukraine. This energy source must be understood from the
perspective of supply and demand, and its infrastructure. Tune in
for more expert insight.
Highlights:
-Natural gas has been doing nothing but going up, and is in the
midst of a parabolic move—having a profound effect on the
economy
-Natural gas has become more important to the economy over the past
20-30 years than petroleum
-Current natural gas prices are attributed to the war in Ukraine
and the pandemic
-During the pandemic, demand for natural gas lowered, so production
was decreased
-The demand has come back, but production cannot ramp up again
quickly
-The economist will say that the cure to high prices is high
prices
-We’re seeing double digit gas prices in Europe, and they’re going
to want to cut back on their dependency on Russia as much as
possible
-ESG bandwagon has tried to divert investments away from fossil
fuels
-Does it make sense to build an infrastructure that won’t be needed
in the next 40 years?
-We have a relatively basic industry, but it’s not fully
understood
Useful Links:
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