Green Is Dead: EU Energy Roadmap Has Shifted From Decarbonization To Energy Security, Goldman Warns

[livingston]

Green Is Dead: EU Energy Roadmap Has Shifted From Decarbonization To Energy Security, Goldman Warns​

Reading toward the end of the Goldman oil upgrade note discussed previously (available to pro subs) we find what is arguably the most important information in the entire research report.

Discussing how the Russian invasion will result in a "dramatic reshape of the global energy landscape for the coming decades", Goldman writes - at the very end of the note - that:

The energy shock created by Russia will change energy policy and planning in coming years, in our view. The EU will soon announce its energy roadmap and has reportedly shifted its short-term focus from decarbonization to energy security, likely relying for now on more coal, more nuclear, and gas generation, and overall allowing for more carbon emissions [consistent with the sharp sell-off in European carbon prices over the past week of nearly 30%].

As Goldman concludes: "This should prove be a significant positive for US and core-OPEC energy output in coming years, and the price induced accelerator of the energy transition for the following decade."

In conclusion all we can say is that it's better late than never that the idiots in charge finally read what we wrote last June - "Will ESG Trigger Energy Hyperinflation." We now know the answer.

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[livingston]

from the comments section
Putin really is the hero of our times.

In just a couple of weeks he solved two of the most important problems facing the planet today, covid-19 and climate crisis!
Remember kids, no sacrifice we made was too great in order to solve these two burning issues of existential importance. We were fully prepared to live in pods (and a lot of us did) and start eating bugs just to save us from these two terrible blights. And now, poof! They're gone!

 

[kev74]

Let’s go Brandon!

 

[livingston]

Will ESG Trigger Energy Hyperinflation​

In a recent blog post from DB's Francis Yared, the credit strategist looks at one of the lesser discussed drivers of inflation and points out that supply shocks to oil prices have historically been relevant for inflation expectations.
As Yared writes, "supply shock to oil prices have had a significant impact on inflation expectations on three occasions over the past half century: in the mid 70s, the mid 80s and the mid 10s." However, unlike the infamous price explosions of the 70s and 80s, in the latest episode the "shale oil revolution" resulted in a significant positive supply shock to oil markets which led OPEC in 2014 to defend its market share rather than oil prices. The downward pressure on oil prices, Yared writes, resulted in a shift to a lower inflation regime, which was reflected in both consumer and market inflation expectations (University of Michigan 5-10y and 5y5y breakevens) as well as monetary policy expectations and the term premium.

Which in turn should also answer the other pressing question: why are central banks so desperate to issue their own digital, programmable currencies? Well, the ability to turn money on and off with the literal flip of a switch will come in extremely useful in a world where authorities have lost control over all other monetary pathways...

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[Phazer]

Will ESG Trigger Energy Hyperinflation​

In a recent blog post from DB's Francis Yared, the credit strategist looks at one of the lesser discussed drivers of inflation and points out that supply shocks to oil prices have historically been relevant for inflation expectations.
As Yared writes, "supply shock to oil prices have had a significant impact on inflation expectations on three occasions over the past half century: in the mid 70s, the mid 80s and the mid 10s." However, unlike the infamous price explosions of the 70s and 80s, in the latest episode the "shale oil revolution" resulted in a significant positive supply shock to oil markets which led OPEC in 2014 to defend its market share rather than oil prices. The downward pressure on oil prices, Yared writes, resulted in a shift to a lower inflation regime, which was reflected in both consumer and market inflation expectations (University of Michigan 5-10y and 5y5y breakevens) as well as monetary policy expectations and the term premium.

Which in turn should also answer the other pressing question: why are central banks so desperate to issue their own digital, programmable currencies? Well, the ability to turn money on and off with the literal flip of a switch will come in extremely useful in a world where authorities have lost control over all other monetary pathways...

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

The energy shock created by Russia will change energy policy and planning in coming years, in our view. The EU will soon announce its energy roadmap and has reportedly shifted its short-term focus from decarbonization to energy security, likely relying for now on more coal, more nuclear, and gas generation, and overall allowing for more carbon emissions [consistent with the sharp sell-off in European carbon prices over the past week of nearly 30%].​

BINGO! Morons.

 

[Defilade]

from the comments section
Putin really is the hero of our times.

In just a couple of weeks he solved two of the most important problems facing the planet today, covid-19 and climate crisis!
Remember kids, no sacrifice we made was too great in order to solve these two burning issues of existential importance. We were fully prepared to live in pods (and a lot of us did) and start eating bugs just to save us from these two terrible blights. And now, poof! They're gone!

Exactly! Good luck on selling Go Green shit! People want drill baby drill! Ha!!