Christmas edition…..a collection of pictures

A blue skied Sunday morning here in Houston (although Monday as you hopefully read this LIVE!), and I was stopped in my tracks by the WoodMac 5 charts article below….it gave me some really good MUSING time

https://www.woodmac.com/horizons/five-energy-charts/?utm_source=linkedin&utm_medium=social&utm_campaign=horizons-december-2024&utm_content=121224-hero

I was playing around with the 5 topics that they wrote about and all caused my to go WOW (see below)

However I was struck by the conversation index below and starting to MUSE on how that was relevant to the world we are about to enter.

No doubt the US is seeing a demand in energy need. Numerous announcements recently about the BIG GUYS taking power from more clean sources to fuel the need to data centres and other thirsts that we have today as a society, and for me this directly correlates to the amount of effort and investment that is required to upgrade the GRID infrastructure (one of my top trends for 2025), which was evident on the recent poll I asked you dear readers to get involved with….over half thought this was the significant trend of 2025 and beyond….I agree for the record

I am then going to pick up on the ‘Meh’ conversation index on LNG and CCUS. For me (and for you), Gas was the next trend which I think it going to be fundamental to how we live and work over the coming years. Yes once you have gas you need to use gas and then you need to transmit it to where it is needed, however the uptick and correlation between LNG production and the need to remove the CO2 and store it seems to be to be lagging and struggling to be getting going.

I appreciate that as WoodMac put it, CCUS is the reverse of Gas production but both are handling similar types of ‘fluids’ and there is a significant infrastructure cost but if we are truly to get the GAS machine going we MUST invest in CO2 removal and Storage (or even usage….). Which gets me to the INVESTMENT point….we have to as a society finds ways to lean into the investment in Climate technologies, which scored a lowly 8% in the poll. I think the issue here is the word CLIMATE in front of INVESTMENT, but it is truly what it is. It’s all a matter of RISK and OPPORTUNITY and a longer term investment time line. We all deserve the levels of life we have sustained thus far which includes a nice environment and a cosy supply of energy to fuel our needs. Unlocking the link between DECARBONIZATION supply and INVESTMENT has to have more focus on it.

I look at the chart below, showing the production of O&G vs Renewables (WIND) in the North Sea and find it stark but is aligned to the political will of the North Sea governments (although the chart goes out a long way….), however I also note that traditional fossil fuels are still a dominant part of the mix for a long time coming, which there gets me back to the need to decarbonize oil and gas.

Was great to see this week final investment decisions of for the Net Zero Teeside efforts to industrialise CCUS in the UK….this is a great step forward albeit small, but we have to start somewhere to get the cost curve dynamics working downwards as they have done for on and offshore renewables…..

So where does this lead me as we wrap up 2024 and embark on 2025? Continue to INVEST in infrastructure associated with GRID upgrades and DECARBONIZE GAS. The investment and the link to climate is FUNDAMENTAL

Sounds pretty simple but in the words of the Houston Energy and Climate Week….’WE DO HARD THINGS’. This to me is the phrase of the year and I am stoked to be in this industry

So how can I help you? As a Senior Advisor to ENZO ADVISORS (https://www.enzoadvisorsllc.com/) we are committed to driving tangible impact $$ back to the bottom line…..we have a quite frankly stunning line up of experts that can help you DO in the space.

Merry Christmas to you all and here’s to a very fruitful 2025!!