Former President Bill Clinton says energy will produce the next 10-year U.S. economic up-cycle. The tech industry produced the dramatic investment returns of the 1990s, and dollars chasing the next big thing produced the residential real estate boom and its tremendous wealth and profit-taking in this decade.
Next up for the flow of investment capital: energy.
Clinton delivered an opening keynote address to attendees at the Rodman & Renshaw annual global investment conference this fall in New York. The I-banking and financial-advisory firm practices across healthcare (pharmaceuticals and biotech) and natural resources, including alternative energy.
The firm purchased energy-focused I-banker and advisor COSCO Capital Management LLC earlier this year, gaining an energy practice, which is now known as The Rodman Energy Group.
Transforming the U.S. energy-consumption pattern will result in the greatest economic growth during the next 10 years, Clinton said. Investment capital and jobs will be born from converting the country from a largely hydrocarbon-consuming economy to one of a mixture of hydrocarbons and alternative energy, including solar and wind, and in improving energy efficiency, involving both improved choices of which type of energy source to use and a reduction in wastefulness.
For example, changing light bulbs and light switches requires work.
He added that world oil prices will settle at about $100 a barrel, and trend up from there because there is finite supply going forward. “Just like oil was not going to stay at $140 a barrel, it won’t stay at $70 either.”
The up-cycle in U.S. economic growth that follows this coming energy up-cycle will be biotechnology, he added.
“If I were you, I would be optimistic in the midst of all of this mess.” It isn’t the first time financial markets have been in great distress. “None of us is immune to greed, stupidity and old-fashioned error.”
Decisions made in this correction can bring great opportunity, he added, and, if done right, the U.S. economy will bring a different and more broadly shared prosperity. He added, “People have always predicted the demise of America…Everyone who has invested against America has lost…We keep stumbling in the right direction.”
Recommended Reading
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
Wildcatting is Back: The New Lower 48 Oil Plays
2024-12-15 - Operators wanting to grow oil inventory organically are finding promising potential as modern drilling and completion costs have dropped while adding inventory via M&A is increasingly costly.
Hot Permian Pie: Birch’s Scorching New Dean Wells in Dawson County
2024-10-15 - Birch Resources is continuing its big-oil-well streak in the Dean formation in southern Dawson County with two new wells IP’ing up to 2,768 bbl/d.
Utica’s Encino Boasts Four Pillars to Claim Top Appalachian Oil Producer
2024-11-08 - Encino’s aggressive expansion in the Utica shale has not only reshaped its business, but also set new benchmarks for operational excellence in the sector.
Aris Water Solutions’ Answers to Permian’s Produced Water Problem
2024-12-04 - Aris Water Solutions has some answers to one of the Permian’s biggest headwinds—produced water management—but there’s still a ways to go, said CEO Amanda Brock at the DUG Executive Oil Conference & Expo.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.