What the Frac!? – OWTW

🛢️  FOOD PRICES: WHAT HAPPENS WITH OIL AT $100?

Did you notice how your grocery bills have risen “a little” over the past year?

Considering that what you pay in the supermarket is the end of the value chain — which is 6-12 months in the making — the prices are going to be a hell of a lot higher 6-12 months from now.

Our friend Tracy (aka @chigirl) pointed out something that seems to be lost on our political leaders…

Given the interconnection between energy and food production, we can’t help but wonder what happens when (not if!) oil hits $100?

🤯  BIDEN, WHAT THE FRAC!?

You just can’t make this “isht” up…

We probably don’t have to remind you that just a year ago, Joe Biden was shaking his finger at the oil and gas industry and promising to “transition away from the oil industry.”

This struck us as complete lunacy. On the eve of the 2020 US Presidential election, we wondered in Insider Weekly what Biden’s presidency would mean for the world (and for our investment portfolios):

Fracked oil wells die quite quickly, and the US is the biggest producer of oil and gas with US shale accounting for 70% of the growth in oil and gas production over the last 10 years or so. The knock on implications of Biden’s “New Green Deal” are so huge that even we struggle to comprehend. They literally are those dreamt up by madmen.

It is worth remembering that the economy is not like a toilet where you can tweak one or two things to fix it. It is rather an ecosystem. Disturb it and there are consequences many of which are unforeseen.

Come to think of it, maybe hydrocarbons are the big winner from Biden’s push to eliminate them. How funny is that?

Now, we don’t want to run a victory lap just yet, but right now it seems to be exactly what’s happening.

☢️  THE NUCLEAR WAVE

Uranium stocks are running like they stole something. Since we started investing in uranium miners in September and October 2016 we are up 4x, 5x, 10x and a whole bunch in between.

Goodness, it’s been a long time coming. From September 2016 until September 2020 we barely made any money on our uranium positions. Yes, we called the bottom, but we didn’t figure that this was just the start of a long, 4-year bottoming phase. And boom! Over the last 12 months the hammer has gone down.

Now, that is a great “history lesson,” but what are we doing here and now? We’re just sitting tight. Why?

Judging by the headlines from just this week, it appears the uranium bull market is just getting going.

It wasn’t that long ago when uranium was almost as hated as coal.

📈  2.5 BILLION REASONS COAL IS HERE TO STAY

Speaking of coal…

This chart landed on our desks the other day. It shows why — despite the woke Western politicians and pointy shoes trying to convince you otherwise — coal isn’t going away anytime soon.

There’s three particular bars you should pay attention to: India, China, and Indonesia. That’s ~2.5 billion people (about a third of the world population) whose daily lives depend on coal.

👕  MERCH: IT’S ONLY MONEY (RIGHT?)

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Have a great weekend!

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