The US being a net energy exporter in one chart
Chart: Stephane Deo, Michel A. Arouet, Eleva Capital
The S&P 500 Energy ETF $XLE just formed a Golden Cross right as it hit a 1-year high
Source: Barchart
Saudi Aramco CEO Amin Nasser said the current energy transition strategy is failing.
The world should give up on the idea of phasing out oil and gas, Nasser said. The CEO called for a reset of the strategy that focuses on reducing emissions, not phasing out oil and gas. “In the real world, the current transition strategy is visibly failing on most fronts as it collides with five hard realities,” Nasser said during a panel interview at the CERAWeek by S&P Global energy conference in Houston, Texas. “A transition strategy reset is urgently needed and my proposal is this: We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately reflecting realistic demand assumptions,” the CEO said to applause from the audience. Source: CNBC
In case you missed it...energy stocks relative performance vs sp500 has turned around at the end of February...
Source: J-C Parets
Capriole has developed a model to calculate the intrinsic value of bitcoin as determined by energy spent.
The current intrinsic value based on this approach is close to $81,000. Some highlights of this methodology: - Energy, raw Joules alone, can be used to estimate Bitcoin’s fair value - Increased energy input increases the fair value of a Bitcoin (and vice versa for decreases) - Bitcoin’s price is mean reverting to its Energy Value - The Energy Value model states that if all miners were to stop mining Bitcoin tomorrow, the power input would be zero and Bitcoin would be worthless This approach might be of interest for Pershing Square Capital Management founder and CEO Bill Ackman who turned some of his attention to Bitcoin on Saturday afternoon, cheekily suggesting a scenario in which the price for the world's largest crypto could soar far higher than anyone might imagine. "Bitcoin price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy and the cycle continues," said Ackman in a post on X. "Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses," he continued. "Maybe I should buy some Bitcoin." "The problem of course is that it also works in reverse," he later added. https://lnkd.in/eEd7D9gw Source: Capriole.com, Charles Edwards
Energy dependence and independence summarized in one chart
Source: JPMAM
Energy is the most de-correlated sector to Tech.
Source: BNP
NVIDIA is now bigger than the entire energy sector.
This makes sense because one is needed to get through everyday life. Source: Bloomberg
