"Republicans Don’t Accept The Science And Democrats Don’t Accept The Math" Featuring US Senator Mary Landrieu, D-LA

C.O.B. Tuesday

Today we had the honor of hosting former Senator Mary Landrieu of Louisiana. Senator Landrieu served for three terms from 1997 to 2015 and chaired the Senate Energy and Natural Resources Committee, the Small Business and Entrepreneurship Committee and the Homeland Security Appropriations Committee. She also served on the Armed Forces Committee. During her time in Washington, Senator Landrieu gained a reputation for working across the aisle on important energy and other national priorities. Currently, Senator Landrieu is Co-Chair of Natural Allies, a coalition of stakeholders that recognize the vital role natural gas plays in the energy mix to meet carbon reduction goals. We were thrilled to visit with Senator Landrieu.
In our conversation we discuss how Louisiana’s industrial base relies heavily on energy production and consumption, the historical bipartisanship in the Senate Energy and Natural Resources Committee, how geography influences people’s understanding and views on energy issues, the role of natural gas in reducing emissions, and why nuclear energy has bipartisan support. Senator Landrieu shares background on her role at Natural Allies and the group’s focus on supporting US natural gas, the need to educate the public on the economic benefit of open markets particularly for US exports, finding ways to help countries like China and India reduce their reliance on coal, why the Senator disagreed with the Biden Administration's LNG permitting pause, and broadly the need for pragmatic, bipartisan energy and climate solutions. We explore SPR usage and levels, the status of permitting reform with significant delays expected until after the Presidential Election, finding practical solutions to reduce emissions and grow the economy through building infrastructure faster, and much more. It was a fantastic conversation and we are very grateful to Senator Landrieu for sharing her time and valuable insights with us all. She calls it like she sees it and is a very refreshing centrist voice.
Mike Bradley kicked us off by highlighting that 10-year bond yields continued their recent plunge after last week’s cooler than expected CPI report and currently trade at ~4.15%. WTI price is trading at ~$81/bbl and has been stuck in a tight trading range ($80-$83/bbl) for the last several weeks. Crude oil traders are focused on global demand and are growing concerned with slowing global economic growth, especially China. U.S. natural gas continued its recent plunge and trades at ~$2.15/Mcf, despite Hurricane Beryl temporarily curtailing 1.7-1.8bcfd from Freeport LNG. He noted that U.S. natural gas production has rebounded back above 101bcfd and remains problematic given natural gas storage levels that are ~18% above normal. He discussed that the main word to describe broader equity market trading action this last week is “rotation.” Big 6 (AI & Tech equities) and broader equity indices like the S&P 500 & Nasdaq are significantly underperforming smaller-cap indices like the Russell 2000, which are perceived to be bigger beneficiaries of lower future inflation/interest rates. He ended by noting that Q2 Energy sector reporting begins this week with both pipelines (KMI) and oil services (LBRT, HAL & SLB) reporting. Arjun Murti shared his thoughts on the need for a diverse energy portfolio to meet global demands, the roles of the US and Canada as key players in both traditional and new energy markets, the unnecessary partisan divide over energy sources, and the importance of leveraging the US’s leadership in technology and capital markets to lead in energy innovation.
We hope you enjoy the discussion with Senator Landrieu as much as we did. Thanks to you all for your friendship and support!