Comment of the Day
13th July 2023
Eoin Treacy
Jul 14
Video commentary for July 13th 2023
A link to today's video commentary is posted in the Subscriber's Area.
Exxon to Buy Denbury for $4.9 Billion in CO2 Pipeline Push
This article from Bloomberg may be of interest. Here is a section:
Carbon capture is the bedrock of Exxon’s climate strategy, which targets net-zero emissions by 2050 from its operations, and buying Denbury would give the oil giant critical and hard-to-replicate infrastructure as it pursues that goal. Exxon has pledged to spend $17 billion on lower-carbon investments through 2027. Capturing carbon from its own operations and third parties in hard-to-decarbonize sectors is a priority.
Denbury’s Rocky Mountain assets are connected to Exxon’s Shute Creek gas facility near LaBarge, Wyoming, which has captured more carbon than any other asset in the US.
Eoin Treacy's view
The only way decarbonization works in oil and gas is if it is profitable. That’s a big ask since capturing it is an additional cost. That’s why carbon trading programs put a premium on the commodity.
Since the disruption of war in Ukraine, most of the large oil and gas companies have walked back their commitments to decarbonize on practical grounds. Instead, they are boosting investment and those are decade-long plans. The fact Shell is talking about selling a stake in its renewable power venture on the same day that Exxon is buying a carbon dioxide pipeline is a clear indication of the direction the energy sector is taking.
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AI Is Helping Scientists Locate Rare and Useful Minerals
This article from ExtremeTech may be of interest. Here is a section:
The researchers tested their model in October 2020 by requesting locations for rutherfordine, andersonite, schröckingerite, bayleyite, and zippeite. For efficiency, they set parameters in which only predictions with a 70% or higher “confidence” level would be shown. The model returned four predicted localities for rutherfordine, one of which has since been confirmed in Italy; one for andersonite, which has yet to be confirmed; one for schröckingerite, which was confirmed in Colorado; two for bayleyite, both Utah locations of which have been suspected before; and seven for zippeite, one of which has been confirmed in the Czech Republic. (As with bayleyite, four of the predicted zippeite localities had already been suspected.)
Another test run focusing exclusively on raw earth elements (REE) predicted localities for monazite, allanite, and spodumene, which are used for construction, radiation research, and batteries. Out of 15 predictions, 12 monazite localities have been confirmed; 13 out of 19 allanite localities have been confirmed; and one out of 12 spodumene localities have been confirmed.
Eoin Treacy's view
Innovation in prospecting has been a major driver of resource discoveries over the last couple of decades. Applying deep learning models to abundant data is the most productive use of AI because the data is not in question. Together with better geophysical models there is clear potential for impressive resource discoveries to be made. That’s essential if the ambitions of climate activists are to be attained.
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Amazon Prime Day Drives Online Sales Up 6.1%, Lags Estimate
This article from Bloomberg may be of interest. Here is a section:
US shoppers spent $12.7 billion online during Amazon.com Inc (NASDAQ:AMZN).’s 48-hour Prime Day, up 6.1% from a year ago but short of estimates for 9.5% growth, according to Adobe Inc.
An increasing share of customers used “buy now, pay later” services, Adobe said, indicating shoppers are concerned about the economy.
“For months, consumers have felt the effects of persistent inflation and an uncertain economic environment, and it has pushed shoppers to embrace more flexible ways to manage their spending around the Prime Day event,” said Vivek Pandya, an analyst with the technology company. “The revenue growth attributed to buy now, pay later is a preview of what we can expect in the months ahead, especially as we near the holiday shopping season.”
Eoin Treacy's view
Amazon, in common with the other mega-caps, has staged an impressive rally over the last seven months. The basis for the rebound is inherently tied to the expectation inflationary pressures will subside, rates will return to close to zero and consumer spending will remain resilient throughout.
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Eoin's personal portfolio: stock market leveraged long breakeven stop triggered June 26th
One of the questions subscribers ask most often is how to find details of my open trades. To make it easier I will simply repost the latest summary on a daily basis until there is a change.
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