Power shift
Capital markets get gassy
Good morning, fuel futurists. This is your Stock Market Rundown for December 27th, 2024. Thanks for hanging out with me during this holiday week. Let’s get into it:
TODAY’S TOP STORY: GAS GOLDRUSH
When you think about the US energy industry, you probably think “drill, baby, drill”—barrels of oil flowing out of Texas, Oklahoma, and other crude-producing regions. What you may not realize is, when it comes to energy wealth, the US produces billions in gaseous emissions, too.
Liquefied natural gas—better known by its acronym, LNG—is made by chilling natural gas to minus 260 degrees Fahrenheit, so it can be piped and shipped. It’s as frosty and refreshing as a Coors Light—if you’re into cryogenic burns, anyway.
With sanctions cutting off supplies of Russian gas to Europe, the US has become the world’s biggest natural gas exporter. And as always, where money is being made, capital will flow.
Major LNG producer Venture Global just filed to go public in 2025. The business has two plants in Louisiana that make billions of dollars processing US natural gas and exporting it to a fuel-thirsty world.
The industry is booming so much that experts predict US LNG capacity will more than double over the next four years. But there are risks: some regulators worry “unfettered exports” of LNG could push up domestic prices, hitting American households in the wallet.
Another quibble with LNG is that, while it’s greener than coal, it still contains greenhouse gases that cause global warming. In January 2024, the Biden administration paused approval of new natural gas export terminals, to review the economic and climate impacts of natural gas.
But the gas molecules will soon be flowing again: president-elect Donald Trump has said he will approve pending terminal permits “on my very first day back” in office. Oil and gas executives will be exchanging high-fives—even if environmentalists aren’t.
SO WHAT ELSE IS GOING ON?
In “the rich get richer” news: according to UBS, the total wealth of the world’s two-thousand-odd billionaires has risen to $14 trillion. Something to think about when you’re deciding whether to pay the $2 extra for guac.
Need a new car? Considering an electric vehicle? You might end up becoming best friends with your local mechanic. Consumer Reports says EVs have 42% more problems than gas-powered cars.
Big news for college students, stoners, and anybody who prefers their pasta to come out of a can: global food conglomerate Conagra is selling off Chef Boyardee. Guess the Chef lost a power struggle with Orville Redenbacher.
I thought it was bad that the US government surveils our phone calls, but now it turns out Chinese hackers do too. US officials say a Chinese hacking group stole Americans’ metadata by targeting AT&T, Verizon, and other telecoms. At this point, hackers probably know more about me than my therapist.
That’s it for this week, amigos. Enjoy the rest of the holiday break, and let’s circle back next week. Yours in capitalism, The Axe