The heading give's the rationale for the story, its the thinking process that should be interesting to a discerning reader.
The article is written by an economist I greatly admire in Greg Canavan, when you read this you may pick up some more information about climate alarmism. It is not a climate change article. just like the previous one that has gone unread (so be it) but one that more of the "unwashed" should listen to and understand where we are going.
Why am I publishing these things? because the ignorance around climate alarmism has been lost in the debate about "climate change".Underlined emphasis is mine.
You could see this coming…
I wrote as much in an article for The Insider back in June…
With the coming energy transition, does oil (and other fossil fuel energies) fade off into the sunset, or does it go out with a bang?
Most people I know think the fossil fuel industry is a dead man walking. Demand will relentlessly drop in the years ahead, and prices will fall along with it.
The court rulings and shareholder activism (against fossil fuel companies) will do one thing: make investment in new supply that much harder/more expensive. That wouldn’t be so bad if you think demand was going to drop off a cliff anyway. But it’s not going to happen.
Not unless you believe in fairy tales.
After reading the International Energy Agency’s (IEA) report about how we get to ‘net zero by 2050’, I’m even more bullish on energy prices long term. In my view, the sector will go out with a bang, not a whimper.
Let me explain…
In the document, the IEA provides a few scenarios:
The Stated Policies Scenario (STEPS)
The Announced Pledges Case (APC)
STEPS ‘takes account only of specific policies that are in place or have been announced by governments’. The APC ‘assumes that all announced national net zero pledges are achieved in full and on time, whether or not they are currently underpinned by specific policies’.
It is easy to make a virtue signalling pledge about net-zero emissions by 2050. Especially when you know you’re not going to be around then. But it’s another thing to make it happen.
So the scenario based on ‘announced pledges’ is not realistic. It might sound good, but it’s not realistic to make any investment assumptions based on it.
Let’s look at STEPS, then. This is more realistic because developing nations simply won’t jeopardise their growth by turning away from cheap fossil fuels.
‘There is strong divergence between the outlook for emissions in advanced economies on one hand and the emerging market and developing economies on the other. In advanced economies, despite a small rebound in the early 2020s, CO2 emissions decline by about a third between 2020 and 2050, thanks to the impact of policies and technological progress in reducing energy demand and switching to cleaner fuels. In emerging market and developing economies, energy demand continues to grow strongly because of increased population, brisk economic growth, urbanisation and the expansion of infrastructure: these effects outweigh improvements in energy efficiency and the deployment of clean technologies, causing CO2 emissions to grow by almost 20% by the mid‐2040s, before declining marginally to 2050.
‘In advanced economies, energy use falls by around 5% to 2050, despite a 75% increase in economic activity over the period. In emerging market and developing economies, energy use increases by 50% to 2050, reflecting a tripling of economic output between 2020 and 2050.
‘The global fuel mix changes significantly between 2020 and 2050. Coal use, which peaked in 2014, falls by around 15%. Having fallen sharply in 2020 due to the pandemic, oil demand rebounds quickly, returning to the 2019 level of 98 million barrels per day (mb/d) by 2023 and reaching a plateau of around 104 mb/d shortly after 2030. Natural gas demand increases from 3 900 billion cubic metres (bcm) in 2020 to 4 600 bcm in 2030 and 5 700 bcm in 2050. Nuclear energy grows by 15% between 2020 and 2030, mainly reflecting expansions in China.’
So coal demand falls by 0.5% per year, oil demand grows modestly, while natural gas demand grows 46%! What do you think will happen to prices when activism and regulations make it very hard and expensive to develop new sources of supply?
They’re not going to fall sharply, as the IEA expects, that’s for sure.
Look, long-term forecasts like this are a mug’s game. There are so many moving parts. And it is undeniable that the energy transition is underway in the world’s ‘wealthy’ economies.
But developing economies is another question entirely. China has pledged to be net zero by 2060. Anyone who believes that is an idiot. China has underwritten their growth for the past 20 years by ignoring the West.
Technological breakthroughs will ensure the energy transition continues. But in my view, this will occur with fossil fuel prices rising much higher than anyone thinks possible. That will occur due to robust demand and supply constraints.
Think about it. What better way to force developing nations to join the energy transition than through much higher prices?
***
You’ve seen the initial evidence of this over the past month, with natural gas spot prices exploding in Asia, Europe, and the UK. The desire to replenish supplies ahead of the Northern Hemisphere winter has also seen coal prices surge to record highs.
In addition, both Brent crude and West Texas Intermediate oil prices recently broke out to multiyear highs.
The supply side issue I discussed a few months ago is now a reality. A recent Bloomberg article highlights the extent of the issues:
‘Oil explorers need to raise drilling budgets by 54% to more than half a trillion dollars to forestall a significant supply deficit in the next few years, according to Moody’s Investors Service Inc.
‘Crude and natural gas drillers chastened by last year’s unprecedented collapse in demand and prices haven’t responded to the recent market rebound as the industry typically does by expanding the search for untapped fields. While international crude and U.S. gas have risen more than 50% and 120% this year, respectively, drilling outlays are only forecast to increase by 8% globally, Moody’s said in a report Thursday.’
Replies
You probably mean Agenda 2030, which has as its goals things like ending hunger, decreasing structural barriers to women in the workforce (especially in developing nations), and mitigating environmental destruction.
I can see why such ideals would be deeply troubling for some little boys at home on the internet.
Yeah you keep on believing that while I'll keep on believing in the real agenda.
Poppa is right and has been for sometime. This goes well beyond the right or the left, up or down, communist or capitalist, this game we are playing globally is being controlled by a handful of powerful bloodlines, fewer than we all can possibly imagine, and who coincidentally who don't have our good intentions at heart.
We all deep down believe in the goodness of man but as horrible as it sounds there are people who are evil to their core. They control all of the money globally and they have at their disposal all of the levers of power.
None of these mega rich people are good spirited and believe it or not they don't have the worlds best interests at heart - they unfortunately only care about themselves and their goals.
That's a pity for you, me and the rest on here.
Now whilst we squabble on a footy site over who has the thicker cock, or argue over who is more well read about all things Carbon and all things COVID 19, these unimaginably rich parasites are going to eat us all alive whilst we all go on fighting each other over stupid shit like this.
Agenda 30 is real and it's not designed to save humanity - it's designed to enslave it.
Never thought I'd say this but I'm ashamed sometimes to call myself human. I'd rather be a dog or some other kind of animal where consciousness isn't a requirement for survival.
Your role models I presume?
before and after leaving the palace
Heheheh
Will we be jabbed out by Agenda 2030? Unless Christ comes before hand this is the Agenda and everyone rolled up their sleeve. Spain and 8 other countries are awoke now. Isreal on third booster or they can't update their vaccinated card. Ammish aren't effected by Covid cause they don't watch TV. When is the biggest transfer of money rhe world has ever seen happening Red October. I heard add on 2ue last Saturday God's honour say Australian Banks are secure and not affiliated with elite Banks. We are safe. What does that mean? Dead rats everywhere especially in government. Flat earthers don't believe in global warming can't melt the ice surrounding earth. Everyone is sound asleep helping the Agenda.
Ive bought a heap of new tank tops ready for booster 30.... i cant be stuffed continaully rolling up the sleeves.
"cause it's sooo arduous, right Frank. Gives ya clots and leprosy and a controller, and....or do you just like to winge and bitch and moan about a small, low risk thing that you do for the good of us all. When you whine about the vaccine, you come across as a massive pussy. Huge.
I'm with ya mate - all the way to 35 boosters....
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