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Oil and Gas isn’t Dead

It doesn’t matter what you think or what messaging you try to project, the world is reliant on hydrocarbons and it will make up the majority of energy production for the next few decades.

Random thoughts ahead:

1) If you’re in oil and gas: climate change is real. Denying it doesn’t change people’s minds about the O&G industry. It’s pretty easy to understand that carbon in the atmosphere traps heat and warms the planet.

From the other side, it’s also easy to understand that climate models can be wrong as most models are. A lot of extremisms on both sides.

2) Climate change aside, oil and gas is a declining resource, there is a finite amount. At some point, we need new energy sources and those take a long time to develop. The time to do that is now, not when we’re in a crunch for hydrocarbons.

3) Virtue signaling is not the way to drive innovation. A swift divestment from O&G is dangerous for society. An energy transition needs to be driven by superior technological innovation. Not by a bunch of Ivy League kids demanding their university’s endowment fund divest.

4) O&G has one of if not the most technical workforces in the world with a fundamental understanding of physics and machinery. The best climate tech startups will understand this and look to leverage it instead of demonizing people from the industry.

5) With the withdrawal of capital in O&G, expect oil prices to skyrocket over the next 5 years. This can lead to a lot of drilling and field activity. But it will also lead to faster adoption of alternative sources.

6) The technologies with the greatest impact on climate over the next 10 years will actually come from oil and gas. Companies like Crusoe Energy, PowerSentry, SeekOps, etc. have the potential to help substantially decrease carbon emissions within the oil industry.

7) The best way to make $ in this space as a startup investor is to look for founders with at least 10 years of domain expertise. I wouldn’t touch a team that doesn’t have at least 1 person that comes from energy. Silicon Valley will lose a lot of $ in this space.

8) Exciting times are ahead for energy as a whole. A lot of opportunity will open up in O&G for the people who have had diamond hands.

A lot of cool tech will be developed to make new energy sources commercially viable. I’m looking forward to being there for all of it.

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