2/ A common talking point in media & politics is that “we have to rapidly eliminate fossil fuels”. Not only is eliminating fossil fuels objectively impossible to accomplish, doing so would also be devastating to human progress and is radical to even propose
3/ The 4 Pillars of Modern Society are Cement, Steel, Ammonia and Plastic. The common characteristic of these 4 products is that they depend on large-scale inputs of fossil fuels, both for process heat and as feedstocks. IEA expects the consumption of all 4 to rise 50% by 2050
4/ Electricity is not economic to use for industrial processes. The cost of electricity is 3x-5x more expensive per unit of energy than natural gas. In addition, coal makes up such a large % of global power mix, using electricity would actually increase emissions
4/ Cement & Steel create the structures that keep us safe from climate & allow for humanity to make modern infrastructure. Emerging economies will need massive amounts of both to get on par with the Western world. China & India are the largest consumers. We should encourage this
5/ Ammonia creates the fertilizer that makes modern agriculture sustainable. It is made through a thermochemical reaction that requires natural gas (methane). Less than 1/2 of the world’s population could be sustained without fossil fuel based fertilizer. There is no replacement
6/ Plastics are a direct derivative of fossil fuels and are the fastest growing product that is driving modern civilization forward. The IEA expects plastics use to rise 150% by 2050. Without plastics modern life would look dramatically different than it does now
7/ A good example is the battle against COVID. Without plastics the pandemic would have claimed millions of additional lives. We would not have PPE, ventilators, a vaccine, or even remote work (computers) without plastics. Fossil fuels were the unsung hero of the pandemic
8/ The idea that we can eliminate fossil fuels is not real. Even the most aggressive transition of electricity generation sources or transportation (EVs) would not reduce the massive demand for fossil fuels that we will have into the future. This is based on physics not politics
9/ Fossil fuels have been the #1 driver of increased human life & flourishing over the last 100 years. The success of human life on earth is directly tied to the use of fossil fuels. Next time you hear someone say we are going to eliminate them, politely tell them they’re wrong
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Let's take a look at how the price of oil has responded during times when the bond yield curve was inverted over the past 50 years
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2) An inverted yield curve occurs when short-term interest rates are higher than long-term rates, and it is often seen as a signal of an impending economic downturn
3) The first time the yield curve inverted in the past 50 years was in 1978, and oil prices rose sharply in response.
The price of crude oil increased from around $14 per barrel to nearly $40 per barrel in just a few months
The petrodollar system was established in the 1970s after the US abandoned the gold standard and needed a way to prop up the value of the dollar
The system is an arrangement whereby oil is traded globally exclusively in US dollars+
The petrodollar system became dominant due to the power of the US military & its ability to secure oil from the Middle East
Countries that wanted to buy oil had to hold dollars, effectively giving the US a huge market for its currency &supporting its global economic dominance
5 things I've learned as an entrepreneur that I wish I knew when I started:
1.) Just do. A founder once told me that a good way to never be become an entrepreneur is to talk about it all the time. Stop talking about it and start doing
Once you start, you’re going to find out really quick how good your idea is
2.) Try to get away from selling your time
Time is the most valuable thing you have and no one is ever going to pay you as much as it’s worth
Find a way to make money that isn’t tied to your time. It's hard to create real wealth selling your time