POWER THEM RELY ON, WELL, THE
FOSSIL FUSE IN THE PAST.
AND IT’S A RIDDLE AND A CATCHY
CONUNDRUM.
AND JOINING US EMILY ROWLAND, I
ENDED WITH YOU, I WANT YOUR
TAKE ON THAT, THAT THIS PUSH
NOW FOR CLEAN ENERGY OR TO
ADDRESS THE CLIMATE LEAVES OUT
THE DIRTY LITTLE FACT IN THE
INTERIM, IT MIGHT BE ABOUT
JOBS, BUT MORE JOBS ARE BEING
LOST NOW THAN GAINED.
HOW FAR DOES THIS GO?
DO YOU WORRY ABOUT THAT?
>> YEAH, NEIL, SO GOVERNMENT
INTERVENTION IN THE ECONOMY IN
THIS CASE, VIA JOB GROWTH, CAN
OFTEN RESULT IN INEFFICIENT USE
OF CAPITAL.
DURING THE OBAMA ADMINISTRATION
THERE WAS $500 MILLION OF
TAXPAYERS MONEY USED TO GO TO
SOLYNDRA AND ALL OF THOSE JOBS
WERE LOST.
AND IT COMES DOWN TO THE
INVISIBLE HAND, WHICH IS THE
DRIVING THEORY BEHIND
CAPITALISM THAT SUGGESTS THAT
COMPANIES ARE INDIVIDUALS WHO
ACT IN THEIR OWN BEST INTEREST
AND COMPETE NATURALLY.
THAT’S OFTEN -- THAT’S ALWAYS
GOING TO RESULT IN A BETTER
OUTCOME THAN GOVERNMENTS THAT
ARE HIGHLY REGULATED OR
CENTRALIZED.
SO AS YOU MENTIONED, WE ALL ARE
IN FAVOR OF CLEAN ENERGY AND
THERE HAVE BEEN GREAT
INITIATIVES, WHETHER IT’S WIND
OR SOLAR, THE COMPANIES NEAT TO
ACT AND COMPETE NATURALLY IN
ORDER FOR JOB GROWTH TO BE
ATTAINABLE.
>> THE ONE THING WORRYING ME,
WE LOSE SIGHT OF THE TREES.
I’M ON ENERGY, AND PRAGMATIC
ABOUT THIS.
THE IMMEDIATE FIRE FOR THE TIME
BEING SEEMS TO BE ROCKING
ENERGY PRICES, PARTICULARLY
NATURAL GAS PRICES AND BETTER
THAN 50%.
LET’S ADDRESS THE FIRE WE HAVE,
ALWAYS COGNIZANT OF SOME OF THE
ENERGY ISSUES WE’RE GOING TO
HAVE IN THE FUTURE, BUT I THINK
YOU CAN GET ALL IN.
YOU DON’T HAVE TO BE ONE AT THE
EXPENSE OF THE OTHER.
YOUR THOUGHTS.
>> NO, I AGREE WITH YOU, AND I
THINK THAT’S BECOMING VERY
CLEAR TO PEOPLE, RIGHT?
YOU CAN’T JUST TRANSITION AND
SAY, OKAY, WE’RE GOING TO STOP
USING FOSSIL FUEL AND TRY TO
PUT THAT INDUSTRY OUT OF
BUSINESS WHILE IN TRANSITION.
YOU NEED TO USE BOTH WITH THE
TRANSITION OF CLEAN ENERGY AND
EVERYBODY SAID IT, EVERYBODY
WANTS A CLEANER PLANET AND
ENERGY, I GET IT.
BUT FOSSIL FUEL AT THE MOMENT
ARE NOT GOING AWAY.
THE ONLY WAY TO CREATE THE
ENERGY TO CHARGE THE VEHICLES
AND THE ELECTRIC THAT WE WANT
TO USE AT THE MOMENT IT WITH
FOSSIL FUELS.
YOU CAN’T SHOW ME WHERE SOLAR
POWER, WIND POWER, IS CHARGING
THE WORLD.
IT’S JUST NOT HAPPENING AT THE
MOMENT.
WHICH DOESN’T MEAN I DON’T
SUPPORT IT, IT JUST MEANS LET’S
BE REALISTIC ON HOW WE GET
THERE.
>> THE PRESIDENT AND THE BACK
DROP FOR HIS REMARKS THIS WEEK
WAS A FORMER COAL FACILITY.
I GUESS IT LOOKS LIKE IT’S BEEN
DEMOLISHED, THE BACK DROP
WASN’T THE MOST EYE APPEALING.
HAVING SAID THAT, IT WILL TRAPS
TRANSITION TO THIS WIND CENTER,
ALL WELL, ALL GOOD, AND YEARS
OFF NOW.
WE’RE IN THE MIDST OF AN ENERGY
SPIKE, AND PARTICULARLY THE GAS
AND PEOPLE ARE LOOKING AT THEIR
BILLS AND WHAT THE--
THIS IS A FAMILY SHOW YOU CAN’T
COMPLETE THAT STATEMENT.
>> LOOK AT THE KEYSTONE
PIPELINE, TOO BAD WE SHUT DOWN
ON DAY ONE, 1500 JOBS AND A LOT
OF THOSE JOBS, THE ENERGY
SECRETARY BUTTIGIEG SAID THEY’D
BE REPLACED AND WE HAVEN’T ZONE
THAT REALLY COME TO FRUITION.
THE MAJORITY OF THE POWER GRID
20% COAL, 40% NATURAL GAS, LESS
THAN 20% FROM RENEWABLES.
SO, THE FACTS ARE THERE AND WE
NEED TO CONTINUE TO USE WHAT WE
HAVE.
THE BLS.
I WAS JUST LOOKING AT DATA AND
MORE THAN HALF A MILLION AUTO
SERVICE TECHNICIANS WERE
EMPLOYED IN MAY OF 2021.
SO THE TRANSITION FROM
GREENHOUSE GASES TO GREEN
ENERGY, A LOT OF THE JOBS LOST
ARE GOING TO BE MECHANICS,
SERVICE DECKS, BLUE COLOR JOBS
THAT THE INTERNAL COMBUSTION
MOTORS AND THE CONVENTIONAL
MOTORS ARE MORE COMPLEX THAN
BATTERY, ELECTRIC VEHICLES.
SO IT’S DOUBTFUL TO ME THAT
WE’LL GET A ONE-TO-ONE
REPLACEMENT, EVEN IN THE BEST
CASE SCENARIOS, LET ALONE THESE
MILLIONS OF JOBS THAT THE BIDEN
ADMINISTRATION SEEMS TO THINK
AND SEEMS FRUSTRATED WITH IN
THEIR PROGRESS IN GETTING AN
AGREEMENT.
NEIL: AND I GUESS IT ONLY
SOUNDS FASCINATING, BUT I
ALWAYS BELIEVE LET THE
GOVERNMENT AFADE AND THE
CONCERN CAN’T.
AND THEY CAN DIRECT MONEY AND
SOMETIMES DOESN’T WORK OUT THE
WAY THEY ENVISIONED.
AND WE’RE BACK TO HOW MUCH CAN
OR SHOULD THE GOVERNMENT DO
PARTICULARLY GIVEN THE CURRENT
CRISIS WE EVER RIGHT NOW?
>> THE GOVERNMENT SHOULD STAY
COMPLETELY OUT OF IT.
THE MORE THAT THE GOVERNMENT
GETS INVOLVED, UNINTENDED
CONSEQUENCES COMES TO FRUITION.
NEIL: EMILY -- I’M SORRY,
THERE.
EMILY, WHAT DO YOU THINK OF
THIS ARGUMENT?
.
I AGREE WITH FREE MARKET DOWN
TO CAPITALISM AND IT WORKS
UNLESS THERE ARE SUCCESSFUL
COMPANIES THAT ARE WORKING ON
THE INITIATIVES AS WE’VE
HIGHLIGHTED ON THE PANEL TODAY.
IT’S GOING TO TAKE TIME TO GET
THERE AND I THINK THAT THE
ATTENTION SHOULD BE POTENTIALLY
PAID HERE TO THE ENERGY CRISIS
AT HAND.
STILL A CONCERN AND WE’VE SEEN
OIL PRICES COME BACK DOWN.
WE’RE AT ABOUT 95 A BARREL AND
WE BELIEVE THAT THE COMMODITIES
ARE CONFUSING THE MARKETS.
NEIL: THAT COULD BE A DEMAND
THING THAT THE WORLD IS ALREADY
SPEAKING OUT LOUD HERE THAT
THEY’RE CUTTING BACK.
ALREADY THE EUROPEAN UNION IS
URGING MEMBER STATES AND THEIR
CITIZENS TO CURTAIL NATURAL GAS
CONVENTION UP TO 15% SO PREPARE
FOR CUT-OFF AND SUPPLY.
WITH COUNTRIES LIKE THAT AND I
THINK EVEN IN THE CASE OF
GERMANY RIGHT NOW, REVISITING
COAL TO GET US THROUGH THIS.
I MEAN, THEY’RE BEING PRAGMATIC
ABOUT IT, AND THEY HAVEN’T
GIVEN UP THEIR CLIMATE DREAMS
AND HOPES, BUT WHAT WE’RE
DEALING WITH.
>> AND THAT GETS BACK TO WHERE
WE ARE IN THE ECONOMIC CYCLE.
NEIL: KENNY, TO THAT POINT.
>> YEAH, FLOW NO, I THINK YOU’RE
RIGHT.
WHETHER THE EUROPEANS ARE
CUTTING BACK BECAUSE OF THE
RUSSIAN CRISIS AND TRYING TO
STAY AHEAD OF IT.
IF YOU LOOK AT NATURAL GAS AND
COAL STOCKS OVER THE LAST SIX
MONTHS, THEY’VE ACCELERATED AND
MOVED HIGHER IN ANTICIPATION OF
STILL, THE DEMAND TO CREATE
ENERGY AROUND THE WORLD.
NEIL: GUYS, IF I CAN STEP BACK
AND LOOK AT THE MARKETS WHILE I
HAVE YOU FINE BRAINS WITH ME,
I’M CURIOUS WHAT YOU MAKE,
KATHERINE, WHAT THE MARKET WAG
SELLING.
YESTERDAY NOTWITHSTANDING, A
LOT OF THE MARKETS HAVE COME
BACK APPRECIABLY.
THE NASDAQ DOWN 40%, NOW DOWN
24% YEAR TO DATE AND S & P
DEEP, DEEP INTO A BEAR MARKET
NOW DOWN 17% THIS YEAR AND THE
DOW, IT, TOO, WAS IN A BEAR
MARKET.
AND WE’RE WELL OFF OUR LOWS.
TECHNOLOGY STOCKS I GUESS WILL
BE TESTED A LOT NEXT WEEK, BUT
EMILY, ON THAT FRONT, WHERE DO
YOU THINK THINGS GOING FROM
HERE?
>> YEAH, WE’VE SEEN A BIT OF A
BOUNCE, EXPECT A 9% BOUNCE IN
THE S&P 500.
AND OVER THE LAST WEEK OR SO,
KEY DEVELOPMENTS.
ONE IS THAT EARNINGS, YOU KNOW,
EARNINGS HAVE COME IN LESS BAD
AND THEY’VE BEEN OKAY.
NEIL: I LIKE THE WAY YOU TURNED
THAT AS LESS BAD THAN FEARED.
>> I DON’T WANT TO GET TOO
EXCITED ABOUT THIS EARNING SEASON.
I THINK THAT THE 10% SEN PILLED
IN
--
HAS FAR FROM.
AND INVESTIGATORS ARE FEELING A
BIT OF A SENSE OF THE FED IS
PROBABLY GOING TO RAISE RATES
75 BASIS POINTS, 100 WAS FEARED
AFTER THAT 9% HEADLINING CPI
CAME IN.
WE WOULD BE CAREFUL IN HERE
THAT WE THINK THERE’S MORE
VOLATILITY TO COME.
>> AND YOU KNOW, KATHERINE, THE
STRONGER DOLLAR IS FOR U.S.
MULTINATIONALS AND ONCE THEIR
FOREIGN ACHIEVEMENTS ARE
TRANSLATED BACK INTO DOLLARS SO
THAT COULD BE A PROBLEM.
THE FLIPSIDE OF THE WORLD
RUSHING TO A DOLLAR AS A SAFE
HAVEN, THESE COMPANIES COULD
REALLY BE UNDER PRESSURE,
RIGHT?
.
>> I EXPECT THEM TO BE
CONTINUALLY BE UNDER PRESSURE.
I THINK THE SECOND HALF WILL
PROVIDE OPPORTUNITIES FOR
INVESTS TO TAKE ADVANTAGE OF
THE MARKET RALLY.
AND MY SUSPICIOUS IT’S ROLLING
OVER AND THE REAL HE IS SESSION
IS NOT WHAT THE 1Q FIRST OR
SECOND QUARTER TURNING
NEGATIVE.
MY CONCERN IS WHEN THE LABOR
MARKET ROLLS OVER AND WE GET A
RECESSION IN 2023.
THE FED IS HIKING AND HAS TO
RETRACE A LOT OF THIS
EXPANSIONARY POLICY THAT’S DONE
AND I THINK WE’RE IN FOR A
ROCKY--
>> I HOPE YOU’RE WRONG ON THAT.
WE’LL SEE WHAT HAPPENS.