Most people believe we are using fewer fossil fuels than we used to. Unfortunately, this is not the case. The chart below illustrates global energy consumption from 2000 to 2020. The world is growing and so is natural gas and oil consumption. The only energy source which appears to have flatlined is coal. On the other side, renewables have had exponential growth.

The world is growing, and rich nations may have a declining per capita use of fossil fuels. However, poorer nations are growing faster, and they want cheap energy. How can you blame them? History has shown us that reliable energy, that happens to be cheap, has a direct relationship with higher standards of living.

Once we have the full capacity of reliable renewables, we will probably see another surge in standard of living. Until then, there might be an interesting opportunity in energy!

1BP Statistical Review (2000 to 2020), IEA (2021e)

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Have a great weekend.

Milan