Is the Market Thinking Too Short Term About Energy?
Energy markets can change quickly. Commodity prices move, geopolitical events reshape sentiment, and investor appetite shifts. But focusing too heavily on the current cycle can mean missing the longer term opportunity.
Filmed at PRAGMA’s New York Energy Investment Series on 24 June, in this episode of The Energy Pragmatist, Ben West sits down with Blake London, Managing Partner of Formentera Partners, to discuss why a long term perspective is critical when investing in energy.
Against a backdrop of growing energy demand and continued market volatility, Blake discusses the shift from “energy transition” to “energy addition,” the evolving opportunity in upstream oil and gas, and how investors can manage risk while maintaining exposure to long term growth.
I think the biggest mistake is thinking too short term, because the reality is that what’s happened in the last five months is exactly why you can’t be short term in nature.
In this episode, Ben and Blake discuss:
Why short term thinking can undermine energy investment decisions
The shift from energy transition to “energy addition”
The long term drivers of global energy demand
Why international shale could represent the next major opportunity
The role of hedging in managing commodity volatility
How ABS financing is changing energy M&A
What energy needs to do to attract more institutional capital
Where Blake sees the strongest risk adjusted opportunities across the energy value chain
Watch the full conversation with Blake London on The Energy Pragmatist.
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