๐ ๐ฟ๐ฒ๐บ๐ถ๐ป๐ฑ๐ฒ๐ฟ ๐ณ๐ผ๐ฟ ๐ด๐ฎ๐ ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐ฒ๐ฟ๐ ๐ฎ๐ป๐ฑ ๐บ๐ถ๐ฑ๐๐๐ฟ๐ฒ๐ฎ๐บ๐ฒ๐ฟ๐: ๐ฐ๐ฎ๐ฝ๐ฎ๐ฐ๐ถ๐๐ ๐ถ๐ ๐ก๐ข๐ง ๐ด๐ฒ๐ป๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป...
With all the excitement about gas fired generation capacity coming on, mostly connected with data center buildouts, its ๐ฒ๐ฎ๐๐ ๐ฎ๐๐๐๐บ๐ฒ ๐๐ต๐ฎ๐ ๐บ๐ฒ๐ฎ๐ป๐ ๐ฎ ๐น๐ผ๐ ๐บ๐ผ๐ฟ๐ฒ ๐ด๐ฎ๐ ๐ฏ๐๐ฟ๐ป.
๐ง๐ต๐ฎ๐'๐ ๐ฎ ๐ฟ๐ถ๐๐ธ๐ ๐ฎ๐๐๐๐บ๐ฝ๐๐ถ๐ผ๐ป.
As the base of low marginal cost assets like solar, wind and BESS grows, they will deliver the energy we need more in hours of more days. That eats away at demand for gas (demand growth offset on the other side).
In a growing number of cases ๐ถ๐ ๐ถ๐ ๐ฟ๐ฒ๐น๐ถ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐, ๐บ๐ผ๐ฟ๐ฒ ๐๐ต๐ฎ๐ป ๐ฒ๐ป๐ฒ๐ฟ๐ด๐, ๐๐ต๐ฎ๐ ๐ป๐ฒ๐ ๐ด๐ฎ๐ ๐ณ๐ถ๐ฟ๐ฒ๐ฑ ๐ฐ๐ฎ๐ฝ๐ฎ๐ฐ๐ถ๐๐ ๐ถ๐ ๐ฝ๐ฟ๐ผ๐๐ถ๐ฑ๐ถ๐ป๐ด.
Yes, gas fired generation will get paid richly in the hours it serves (part of the compensation for reliability), but there may be fewer of them. And that means if your business model relies on the flow of energy, there may be fewer hours in which your product is in demand.
๐ง๐ต๐ถ๐ป๐ธ ๐บ๐ผ๐ฟ๐ฒ ๐๐ฎ๐น๐๐ฒ, ๐น๐ฒ๐๐ ๐ณ๐น๐ผ๐.
๐ฆ๐ผ ๐ต๐ผ๐ ๐ฑ๐ผ ๐๐ผ๐ ๐๐ฎ๐ธ๐ฒ ๐ฎ๐ฑ๐๐ฎ๐ป๐๐ฎ๐ด๐ฒ? That is something our team has been discussing a lot over the last several months (happy to discuss with you if you have interest).
Whether it's Exxon, CVX, ET or Williams (and others) it seems to mean ๐ด๐ฒ๐๐๐ถ๐ป๐ด ๐ฐ๐น๐ผ๐๐ฒ๐ฟ ๐๐ผ ๐ฑ๐ฒ๐บ๐ฎ๐ป๐ฑ ๐ฎ๐ป๐ฑ ๐ด๐ฒ๐๐๐ถ๐ป๐ด ๐ฟ๐ฒ๐๐ฎ๐ฟ๐ฑ๐ฒ๐ฑ ๐ณ๐ผ๐ฟ ๐ป๐ผ๐ป-๐ฒ๐ป๐ฒ๐ฟ๐ด๐ ๐ฎ๐๐๐ฟ๐ถ๐ฏ๐๐๐ฒ๐ (reliability and environmental).