Ferg's Finds
This is a short weekly email that covers a few things I’ve found interesting during the week.
Article(s)
These two letters sent by Congresswoman Cathy McMorris Rodgers, Chair, Committee on Energy and Commerce and Jeff Duncan, Chair, Subcommittee on Energy, Climate, and Grid Security made my day.
Letter 1: Dr. Fatih Birol, Executive Director, International Energy Agency (IEA)
Letter 2: Jennifer M. Granholm, US Secretary of Energy
These projections are wholly divorced from reality, and it's scary to think some policymakers are basing important decisions upon them.
Podcast/Video
Meb has been doing some great interviews lately: The Biggest Investment Mistake: Billionaire Hedge Fund Cliff Asness Reveals
Quote(s)
“There are no shortcuts to any place worth going.”
- Beverly Sills
Tweet
Feeding my confirmation bias (having just dug into tin).
Charts
Gold vs. silver. "Between the 2 precious metals, gold is the better crisis hedge. But … When the gold/silver ratio is above 90x, history says it is better to go long silver and short gold for a reversion to the mean trade."
Something I'm Pondering
I’m pondering the outperformance we are starting to see in the oil services space when capital expenditure is less than half what it used to be due to dividends/buybacks and debt repayment.
Thats before considering nearly half of sanctioned oil & gas CAPEX is LNG which does nothing to rectify the underinvestment in the oil & gas sector.
Cheers,
Ferg
P.S. If you’re interested in my story and why I started this Substack, you can read the story here.
I suspect the policymaker projections are based on the expectation of a drastically reduced world population by 2050.
"I’m pondering the outperformance we are starting to see in the oil services space when capital expenditure is less than half what it used to be due to dividends/buybacks and debt repayment."
Maybe lower future oil services capacity and better pricing power as the global economy starts seeing more growth with interest rates getting cut?
Love your writing btw. Cheers!