Review Detail

Hate that I had to miss the live version. Just watched the replay. Thought it was a really good overview of O&G investing basics for planners. Fracking was "invented" by George Mitchell of Mitchell Energy (now Devon)in the Barnett Shale in my "back yard", in Wise County, Texas,... so local client interest doesn't allow me the luxury of total ignorance on this topic. The supercycle description was very contextually informative, as was juxtaposition of O&G market size vs. nuke, W&S, and coal. I also found the straightforward thumb rule of avoiding over 50% levered drilling deals very interesting. Would love to hear BJs thought on per bbl and per mcf/btu price outlooks when the up-phase of this supercycle eventually caves to a catch-up in supply, and also, roughly when he might anticipate that occuring. Also, when/if he might anticipate broad national infrastructure build-out of natural gas refueling capacity for vehicles (not just heavy trucks). Very good presenter and presentation.

On the windmills issue, one of the biggest costs of that boondoggle is an externalities cost not currently passed on to electricity rate payers or taxpayers, but involuntarily eaten (subsidized) by landowners who suffer huge uncompensated diminishment of land values for hundreds of yards/miles either side of the hundreds of miles long and 125 foot high unsightly electric power transmission lines/towers connecting wind farms in typically remote wind corridor locations with urban electric power users. This eminent domain forced and yet wholly uncompensated value dimunition effects millions more acres of rural, suburban and urban land every year. Our society usually only allows for total non-recognition of such externalities costs for so long. Point is, the cash/tax subsidies for wind energy that BJ referenced are only a fraction of the true subsidy for this sentimental trip to the land of wooden shoes. Bird-shredding by the mills dwarfs in comparision to bird (and other wildlife) habitat lost to dozers clearing millions of acres of timber for the continually expanding network of transmission lines for this only intermittently available at best power generation source.