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Transcript

Kontrarian Korner #19 - Brynne Kelly

Talking Oil, Natural Gas & Energy Infrastructure With An Oil Trader

After talking with Vince Lanci

a while back, he said I should have Brynne Kelly on to talk about oil markets, and after the recent action in oil, I figured now was as good of a time as any. We talked about oil and natural gas, LNG, energy infrastructure, among other topics.

Podcast Summary

  • Her view on owning energy equities, and why she prefers to get energy exposure directly through the commodities.

  • OPEC spare capacity as the overhang on oil markets for now.

  • Her thoughts on oil going negative in 2020, and how storage and infrastructure are a bottleneck for oil and natural gas.

  • How she uses the shape of the futures curve to gauge sentiment and positioning.

  • The regulatory risk for investing in energy infrastructure, and her thoughts on geopolitical risk.

  • Her time horizon with a typical trade.

  • LNG (liquefied natural gas), and why she’s skeptical that all of the planned projects will get built.

  • Why interstate pipelines won’t happen in this environment, and hydrocarbon infrastructure will not be brought online without a political change or significant crisis.

  • Book Recommendation: Short by Cortwright McMeel.


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