Pulitzer Prize-winning author and economic historian Daniel Yergin is considered one of the world's most influential energy pundits. He was the featured guest in today's Smarter Markets podcast.
As clients will note below, his commentary jibes to a virtual T with our long-term thesis (which we're expressing in our core portfolio) on the energy, and the mining, space:
emphasis mine...
Yergin: "... world oil demand continues to increase till around 2030 and then begins a decline. Not the kind of very dramatic decline that some foresee. I see natural gas continuing to grow for a longer period before it flattens out and begins to decline. So, I think an energy mix in 2050 from where we are today will have a lot more wind and solar, but it will also continue to have a lot of oil and natural gas in it.
Host: "And do you think oil and gas exploration firms, and so-called "big oil", if that still exists, will be able to get access to funding for new exploration? The ESG (environmental, social and governance) movement is very powerful and widespread."
Yergin: I think that's true. I think first I should say, you know you mentioned big oil, and going back to what you were talking about before, I think we're going to be talking about big shovels because there's going to be a lot of mining in the future. And so for mining companies this is a very significant future. I think the access to capital and the constraints on capital (he's referring to "big oil") are definitely there."
"...no question the ESG pressures are going to grow. And with the Biden Administration the regulatory pressures towards (in favor of) ESG are going to grow."
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