![]() Among middle and high-income countries, the ones with more urban environments, which naturally comes with apartment living and less car usage, will generally have less energy consumption than less densely populated suburban driving-oriented countries with single-family homes. There is a strong relationship between a country's GDP per capita and its energy usage per capita, albeit with some extremes. We make uninhabitable environments or barely-environments into comfortably-habitable environments, that are safe and filled with the richness of communication and media. In order to live safely and abundantly in a dangerous world, we rely on electricity, cooling, heating, pumping water, cleaning water, mining minerals, building durable structures, growing food in a mechanized way, and transporting ourselves and our things. ![]() The huge uptick in energy usage is what has allowed humanity to maintain such massive carrying capacity on our planet. Energy Usage and Human LifeĪ large portion of economic growth is about the ability to harness more energy to shape the world around us to a greater and greater extent. It starts with a foundational overview to get on the same page about what specifically we're optimizing for here (since this is inherently a controversial topic) and then builds into more investment implications by the end. ![]() This article continues the research theme by exploring the potential future directions of global energy supply. To the extent that this continues to be true, it has implications for inflation, asset allocation, and geopolitics. My overall view continues to be that the world is currently energy-constrained, mainly due to several years of low capital expenditure and improper energy planning, but then also exacerbated by war-related disruptions.īy limiting nuclear power and hydrocarbon development for various reasons, due to other technologies not being able to replace them at the current time, due to the historical boom/bust capex cycle that the energy sector inevitably goes through, and due to Russia's war, we're set up for quite a turbulent decade in terms of accessing abundant and affordable energy. the time spent elevated) that is damaging to an economy, not just the high water mark that energy prices will reach in any given short timeframe. I followed this up with a shorter piece in July 2022 called " Energy: The Area Under the Curve ", which emphasized that it was the integral of energy prices (i.e. Back in June 2021, I wrote a longform piece on the energy sector called, " The Case for a Longer-term Oil and Gas Bull Market".
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