Baseload Fuel. The output of Spanish gas-fired power plants has jumped 58 percent since the April 28th nationwide outage. The hope is to better stabilize the network after record usage of air conditioning has been seen this year across Europe. You know, the more reliable power generation.
Soar Like an Eagle. We have all been told a number of times that the computing power needed for future demand is huge. We agree. The accompanying chart is from the EIA and notice that one line, “Computing,” soars to the top. Says EIA: “In our Annual Energy Outlook 2025 Reference case, we project the electricity consumed for commercial computing will increase faster than any other end use in buildings. Computing accounted for an estimated 8 percent of commercial sector electricity consumption in 2024 and grows to 20 percent by 2050. Ultimately, more electricity could be consumed by computing than for any other end use in the commercial sector, including lighting, space cooling, and ventilation.”
More Oil. You have to love how it works. We bomb Iran and everyone gets their panties in a wad over the “retaliation” that will be heaped upon us. I watched the TV shows where the hosts were close to panic over the hidden “death cells” in the U.S. that would pop up. Nope. Iran decided on tit-for-tat and launched 14 missiles, the same number of “bunker bombs” dropped. They launched them at a U.S. base in Qatar. They called in advance to warn everyone so there were no casualties, and virtually all of the missiles were intercepted. And Iran said, “So there!” and it’s over. But it does indicate how times have changed for oil. We have enough of it in our own country that we can bomb the third-largest source of crude in the Middle East without any real panic or fear of higher oil prices. Oil matters. In fact, it really matters in today’s political world. But the existence and production of our shale assets has greatly diminished our use of crude oil from the Middle East, and the drop in oil prices proved Mr. Trump right. Grant Smith: “The days when geopolitical shocks unleashed a gusher of petrodollars may be over.”
Grinding Away Higher. The United State produced more energy in 2024 than it consumed. (See chart.) This surplus energy production helped energy exports grow to a record high in 2024, up 4 percent from the previous year. Imports were flat, with the highest net exports on record.
To quote… and this is from Amazon: “As we roll out more generative AI and agents, it should change the way our work is done. It’s hard to know exactly where this nets out over time, but in the next few years, we expect this will reduce our total corporate workforce.” According to the World Economic Forum, about 41 percent of employers said they would downsize their workforce due to AI. Believe me now?
Subscribe to Jim Wicklund’s full e-newsletter, “Things I Learned This Week at…,” distributed weekly via email, by signing up for free at this webpage: https://www.pphb.com/newsletters. Jim is Managing Director / Client Relations and Business Development for investment banking firm PPHB. Leveraging deep industry knowledge and experience, Houston-based PPHB has advised on more than 180 transactions exceeding $11 Billion in total value. PPHB advises in mergers & acquisitions, both sell-side and buy-side, raises institutional private equity and debt, and offers debt and restructuring advisory services. The firm provides clients with proven investment banking partners, committed to the industry, and committed to success.
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