The Van Trump Report

Higher Crude Oil, Locking in Propane, and Few Random Thoughts

I think there’s more risk to the upside than downside right now in the traditional energy space. I’ve been talking to people the past two weeks who have been pricing and locking in propane needs and other energies ahead of what might be higher prices. The thought process is multi-layered but in a dumbed-down elementary version, it goes something like this… The global economies will ALL start to eventually come back online. A lot of oil and energy is still out of position. With everyone trying to get freight and shipments for all kinds of various items there’s clearly going to be some dislocation. In a nutshell, it might be difficult to get all of the energy relocated and moved all around while other industries are also in desperately needing and demanding more freight capacity. At the same time, we are seeing the global powers that be moving forward with a more “green” directive and agenda. It doesn’t take a rocket scientist to figure out you could get much greater adoption of electric, solar and wind energy if oil and traditional energy prices are sky-high. In other words, I don’t think it will hurt many feelings, especially those supporting a new “greener” world if traditional energy prices just keep trucking higher. We could also talk about perhaps more political unrest and uncertainty brewing in the Middle East. Or perhaps the pipeline deals here in the U.S. being shot down one after the other. From what I understand, the 12-year attempt to build a massive oil pipeline from the Canadian oil sands to the Gulf of Mexico is now dead after the company behind Keystone XL decided to pull the plug on the project. Some argue the social heat from climate change protestors and environmentalists may simply make it too difficult to ever get a new pipeline established inside the U.S. If that’s the case, and transporting fossil fuels become more and more expensive I worry that we could see random price spikes at any given moment. Just look what happened recently in the southeast with the hackers hitting the Colonial Pipeline. All I’m saying is to pay close attention. The G-7 leaders are meeting right now in England and the rumor is one major topic of discussion will be more aggressive plans and proposals for battling climate change. I’m not here or wanting to debate climate change, clean energy or any other dividing political topic. From my perspective, it feels like fossil fuels are clearly in the cross-hairs and on the way out, but I’ve been saying this for the past several years. I really think the global leaders see the transition into “clean energy” as a win-win and a way to create a ton of new jobs not only in their respective channels but also in the massive infrastructure changes that will be needed to facilitate the massive changes. Again, I’m not wanting to debate and argue about what I see happening, I want to best think about a plan and strategy how I am going to best navigate the changes for my family and its future. As heavy end-users of fossil fuels, this is something you must stay on top of and be looking to make big adjustments and changes as the powers that be make big adjustments and changes! I like the thought of locking in some energy related inputs. Potash and several other fertilizers have really jumped as of late, I’m hoping that come back down but who knows? Just wanting to help all of my friends and farm families to be thinking weeks, months and years ahead…      

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