"We Grew Up With The Soviet Union, They Are Growing Up With Climate Change" With Dr. David Gattie, University of Georgia

C.O.B. Tuesday

Today we had the pleasure of hosting our good friend Dr. David Gattie, Associate Professor of Engineering at the University of Georgia. In addition to his role in the College of Engineering, David is a Senior Fellow at the University’s Center for International Trade and Security. David has a robust background including 18 years at the University of Georgia and 15 years in the energy private sector across production engineering, energy services engineering, and environmental engineering. His research focuses on the electric power sector, with an emphasis on comprehensive energy policy and integrated resource planning for overall energy and economic security, as well as national security. We were thrilled to visit with David.
In our discussion, David provides an overview of Georgia’s unique energy landscape and power generation focus. He explains Georgia’s approach to long-term energy planning through integrated resource plans mandated every three years, the structure of Georgia’s energy sector, the role of the Public Service Commission, and the pivotal role of nuclear energy in the state’s long-term energy strategy. We explore Georgia’s choice to maintain a regulated market rather than deregulating, the effectiveness of various market systems, trends in regulated versus deregulated markets, and the potential risks of an energy transition that neglects national security and industrial competitiveness. David also discusses the Center for International Trade and Security’s efforts, including training students to become strategic thinkers with expertise in nuclear technology and energy security, as well as collaborating with key organizations and experts in the field. We cover the role of trade in maintaining global stability and preventing conflicts, the expected increase in electricity demand, commercial viability and government involvement in nuclear development, optimism for realistic energy policies, and more. As you’ll hear, it was a meaty conversation and David was a fantastic guest with which to explore these important topics.
David’s full presentation including the slides referenced in our discussion is linked here. For additional reading, David’s recent report entitled “Competitive Advantage as a National Security Objective for US Civilian Nuclear Power Policy” is linked here. Additionally, if you are interested in reading the book David recommends during the show, “The Lessons of Tragedy” is linked here.
Mike Bradley opened the conversation by highlighting that it’s been a wild week for Presidential politics, which is introducing some added uncertainty to global markets. He noted there could be some increased volatility in the bond market at week’s end when Consumer Confidence and the PCE deflator are set to report. On the crude oil front, WTI price has plunged by ~$2.50/bbl (~$77.50/bbl) so far this week due to WTI price breaking through its 50/100/200 day moving averages and growing concern that Chinese commodity demand is slowing. On the energy equity front, Q2 reporting started last week and was skewed towards Oil Services. This week will also be heavy Oil Services but will also be broadening out to gas-levered E&Ps, Canadian E&Ps, Miners, Euro Oil Majors, Refiners and Electric Utilities. He also noted that equity investors will be paying a lot of attention to gas-levered E&P calls this week to get a sense of how they’re thinking about 2H’24/2025 gas price levels/direction and how that might influence their 2H’24 capex/guidance plans. Jeff Tillery added to Mike’s comments on oilfield services earnin