Talk the Talk!  Walk the Walk?

Nearly 200 countries and thousands of delegates burned untold quantities of jet fuel to meet and agree to a new, completely unenforceable climate deal, at the COP28 talks in Dubai. The agreement marks the first time the annual UN meeting has asked countries to move away from fossil fuels.  The agreement doesn’t require a phase-out … Continued

What goes around comes around

Some talking points for climate discussions. According to the International Energy Agency (IEA), global coal consumption is on track to reach all-time highs.  Wikipedia reports that China accounts for more than 50% of the world’s consumption of coal and is the largest user of coal-generated electricity.  So far, China has resisted calls to reduce its … Continued

The Taiwan Strait

The Taiwan Strait is one of the world’s busiest waterways and the main passage for cargo moving between Southeast Asia and Japan, South Korea and Northern China.  The strait, while approximately 200 miles wide, is only navigable by modern ships through a stretch of some 15 miles.  China claims it has sovereignty and jurisdiction over … Continued

Beauty is Only Skin Deep

This may best describe China’s recent certification of the domestically produced C919 jet, intended to eventually compete with Boeing and Airbus families of single aisle commercial jets. The key word for investors in the foregoing is “eventually.” This type of certification allows the airplane to be delivered to Chinese customers for domestic flights.  A broader … Continued

A Reprieve For Nuclear?

The US, France, Germany and several other countries are scrambling to find the money and political will to extend the life of ageing nuclear reactors.  This reflects a growing consensus that the global economy needs more megawatts now.  We previously discussed this issue in our blog of March 25, 2022, ”Coal Versus Climate, Now Versus … Continued

Out of the Frying Pan into the Fire?

According to Wikipedia, this phrase is used to describe the process of moving or getting from a bad situation into a worse one.                                     Maybe Europe should take note.  Recently, the European Union (EU) announced that solar power was destined to be the kingpin of their effort to become independent of Russian energy imports by 2027. … Continued

Guts and Gold

Investors, quite naturally, are very interested in the possible course of events in Ukraine.  History suggests that in the case of perceived mismatches in military strength, courage and a robust, external supply chain, food, medical and armaments, can be surprisingly helpful to the smaller combatant.  At this time, it is clear that the people of … Continued

Land Grabbing

Wikipedia defines land grabbing as the contentious issue of large-scale land acquisitions: the buying or leasing of large pieces of land by domestic and transnational companies, governments, and individuals.  Russia appears to be taking this concept a step further by using military force. Prior to Russia’s invasion, Ukraine has not been all that visible in … Continued

Is Ukraine the Next DMZ?

Readers may recall the establishment of a demilitarized zone (DMZ) between North and South Korea as part of the 1953 Korean Armistice Agreement.  You might also recall the October 1962 Cuban missile crisis, in which Russia sought to deploy ballistic missiles in Cuba.  These two events suggest that a buffer zone can be helpful and, … Continued

Has Putin Led Russia Into a Quagmire?

No one really knows how the current conflict in Ukraine is going to end.  However, in the interim, it might be helpful to consider some of the possibilities.  The war is clearly going very badly for Ukraine’s civilians, as Russia appears to have embarked on a ruthless, scorched earth strategy.  Based on limited reports from … Continued

War In Ukraine

The horrors of war can never be understated.  Loss of life, grave injury, and the trauma of mortal threats never leaves ones soul.  We pray for the well-being of all Ukrainians. While sobering, as investment professionals we are called at all times to weigh the investment climate with an eye towards our fiduciary obligation to … Continued

Bullying Big Banks and Big Oil

There has been a noticeable increase in efforts to bully big oil into reducing fossil fuel assets and to apply similar pressure on big banks to not finance fossil fuel projects.  We discussed this issue in our blog of June 2, 2021 “Fossil Fuels: Big Companies Divest, Small Companies Invest.” Now we have an article … Continued