This is a very good analysis, and an under-reported impact of the #InflationReductionAct: significant reduction in US fossil fuel demand. eenews.net/articles/clima…
The climate provisions of the #InflationReductionAct can be summarized in 3 words: Deploy, deploy, deploy. Clean energy = cheap energy, and if you build it, it will run. You can't subsidize a coal plant enough to make it compete against a plant with no marginal operating cost
Moreover, the fossil fuel industry has become so fat, drunk on subsidies and stupid when it comes to market demand. Dean Wormer told us that's no way to go through life. It also makes them really vulnerable. imf.org/en/Topics/clim…
The political pushback against renewables has always been driven by that fear of deployment. Cheaper energy is a wealth transfer from fossil energy producers to energy consumers. Entrepreneurial producers adapt. The ones we have instead chose to lobby against progress.
So as we now #DeployDeployDeploy we are going to see those fossil assets becoming less and less competitive as consumers prefer cheaper energy. That has the potential to create a virtuous cycle. Bring it on.
One last point: markets already know this. Tesla trades at an EV/EBITDA multiple 10x as high as Exxon. Investors are making it very clear that they don't trust the oil majors to provide long-term returns on capital. 
As I told one of my more recalcitrant colleagues a few months ago: "I get it. Leadership is hard. The good news is you don't have to. Just follow what the markets are already telling us." Onward. /fin
• • •
Missing some Tweet in this thread? You can try to
force a refresh
