Sector composition of the S&P500 has shifted significantly over time.
energy used to be 26% of the index... Source: Goldman Sachs, Blake B. Millard
Energy demand in China has increased rapidly over the last few decades due to rising incomes and industrialization.
The country now uses about the same amount of energy per person as the European Union. You can see this in this chart, with new data from the Energy Institute’s Statistical Review of World Energy. This measure of primary energy is based on the substitution method, which tries to account for the inefficiencies of fossil fuels compared to renewables. Source: Our world in data (This Data Insight was written by @_HannahRitchie and Pablo Rosado.)
Waoouu... 🙄🙄🙄
Seven Chinese solar companies most people haven’t heard of are ALREADY providing more energy for the global economy than Exxon, Chevron, Shell, BP and the other Seven Sisters who once dominated oil production... Source: Bloomberg, David Fickling
Nvidia vs US energy sector...
At $2.6 trillion, Nvidia's market cap is now over $900 billion higher than all of the companies in the S&P 500 Energy sector ... combined. The net income of the Energy sector is $128 billion vs. $43 billion for Nvidia. $NVDA $XLE Source: Charlie Bilello
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
