America's Secret (Energy) Weapon To Win The A.I. War | Doomberg

Winning the A.I. race will depend on abundant cheap energy, which the US has with natural gas

As today's guest rightfully often repeats "Energy is life".

Without it, there is no economy. No means to power the systems society depends on.

And, like it or not, the world still runs on hydrocarbons -- most especially oil.

Well, oil is in an interesting place right now.

It's starting to become cheap again.

After trading near $120/barrell following the Russian embargo ensuing from the war in Ukraine, it's now nearly half that -- trading at $67/barrel the day of this recording.

New technologies are creating oil substitutes from natural gas condensates.

And the OPEC cartel, which has exerted control over world oil supply and therefore price, suddenly looks in danger of losing its grip.

What do all these mean for the future of oil? And in turn, for the economy?

And where are the best opportunities for investors?

To find out, we have the good fortune today to sit down with the green chicken himself, energy analyst Doomberg.

And in addition to oil, Doomberg explains how the A.I. race will likely usher in a new demand era for natural gas - as it can serve as the energetic foundation for A.I. computing power.

For a fascinating discussion on our economy’s reliance on energy, click here or on the video below:

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Adam’s Notes: Doomberg (recorded 9.11.24)

EXECUTIVE SUMMARY:

• The global energy market is currently in a phase of oversupply, particularly in natural gas and coal, following the energy crisis caused by events like the Russia-Ukraine conflict. Engine switching, especially in countries like China, is causing demand for oil to slow as industries and transportation shift toward natural gas, which is significantly cheaper. This shift in energy consumption is creating an appearance of reduced oil demand, but it is more a result of fuel substitution than a slowing global economy.

• While the energy market is relatively stable, geopolitical risks such as potential conflicts in Taiwan, Israel-Palestine, and Ukraine-Russia remain significant wildcards. These events could lead to sudden supply disruptions, impacting oil prices drastically in the short term. Historically, inelastic commodities like oil respond sharply to such events, but in the absence of these risks, the market remains bearish on oil in the medium term.

• A potential game-changer in the energy landscape is the development of