The Inevitable Energy Crunch

The world’s population is growing. Most of these people will be in third-world countries. They will aspire to have creature comforts Americans take for granted. Things like appliances and central air. In the United States, accelerated computing (AI), cloud and blockchain technologies and electric vehicles consume a lot of energy off the already stretched grid. In short, the demand for electricity, energy in general, is poised to accelerate over the next several decades. Is the global grid prepared? Will there be the necessary capacity? How will utilities around the world be able to provide the necessary power without using fossil fuels? Is there any way to prevent higher prices for US consumers?

 

In this week’s Trading Perspectives, Sam Clement and John Norris discuss the inevitability of an energy crunch in the not so distant future. John is so confident, he has bet Sam a steak dinner utility prices will be significantly higher, greater than the official inflation gauges, over the next five years. Is he right?