Guest “Well That’s Funny Right There” by David Middleton
February 24, 2021 – Energy & Environment
Oil reserves are destroying clean energy in 2021 after years of lagging behind
Dion Rabouin, author of Markets
Over the past two years, the stocks of electric vehicles and emerging renewable technologies have risen as investors price in the transition from fossil fuels. By 2021, however, this representation has been reversed.
By the numbers: XOP, an ETF tracking the largest U.S. oil and gas companies, is up nearly 40% so far this year as oil producers like Diamondback Energy and Occidental Petroleum saw their stocks jump more than 50%.
[…]
On the other hand: Clean energy has suffered, led by the swooning of the world’s best stock of 2020, Tesla, which fell in bear market territory, down 20.6% from its last record high on Jan. 8.
[…]
The big picture: Tech companies have broadly seen a turndown so far in February, but renewable energy companies have done much worse. ICLN is down 7.1% this year, while the Nasdaq Composite is up 4.5% and the Nasdaq 100 is up 2.4%
The last word: The 2021 malaise comes despite the good news for the industry in the coming year: President Biden is expected to increase investments in renewable energy in the US, oil prices soar, and initial estimates of global EV sales in 2020 surged to over 3 million and achieved a market share of 4.4% – almost double the 2.5% share of 2019.
Axios
I have my own pet theory as to why oil supplies suddenly went up while the green shale was filling up.
“Buy the Rumor, Sell the News”
Buy the Rumor, Sell the News is a market adage based on the belief that if profit-taking occurs after the actual news is released, stock prices move in anticipation of rumors and recover.
CNBC Meme Generator … SJW fact checker note: This is a meme! This is actually not the dialogue from The Godfather. Bonasera (Salvatore Corsitto) did not whisper to Don Vito Corleone (Marlon Brando) in The Godfather: “Don … buy the rumor, sell the news”.
The rumor
The “rumor” was that if President Donald Trump were defeated by a Democrat in 2020, the new administration would end the oil and gas industry and save the planet with a Warp Speed Moon Shot clean energy pogrom.
The news
The “news” was that the November coup landed dementia-stricken Joe Biden, who often doesn’t know where he is, and the even less competent Vice President Harris, who is supposed to shut down the oil and gas industry and save the planet a warp speed moon shot pogrom for clean energy.
The Axios article compares two Exchange Traded Funds (ETFs):
I made my own chart of XOP & ICLN on the MarketWatch website:
XOP (blue) and ICLN (black) since the beginning of the year.
In terms of year-to-date performance, the two funds were up to date with Harris-Biden Dominion’s first full day.
XOP actually started right after election day:
XOP CNBC
XOP started because oil prices then also rose …
WTI CNBC
Oils good that end well
Nyuk, Nyuk, Nyuk!
Additional notes on SJW Fact Checkers:
- Learn to recognize sarcasm
- The following words / phrases were used sarcastically:
- rebellion
- plagued by dementia
- Harris-Biden Dominion
- pogrom
- If you’ve ever reviewed The Babylon Bee, you might be an idiot.
- If I have to tell you, when I’m sarcastic, there was no point in being sarcastic … It works the same with memes.
- No. I can’t prove Joe Biden drove up the price of oil, but at least I give him credit for something.
- Yeah, I know Curly Howard wasn’t in Oils Well That Ends Well. He was dead at the time. Joe Besser was the fat guy and he didn’t say Nyuk, Nyuk, Nyuk … I’m fat, I can say fat!
Who remembers this classic?
Woob, woob, woob, woob!
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