Videos Of The Week
Looking At Moats For Commodity Companies, Commodities Breaking Out Across The Board & Journalists Complaining About FPSOs
I have a couple great videos this week for readers on commodities. The first one is focused on the commodities space from a 30,000 foot view, and why some producers have moats in an industry full of price takers. The second one looks at recent moves in the commodities space, and why it is set to continue. The last video might be of interest for some readers that own Sable Offshore SOC 0.00%↑, and the rumor of federal involvement. Eventually they will figure out that the company is going to get the oil one way or another, and Newsom has a decision to make sooner rather than later.
Focused Compounding on Moats in Commodities
I talked to Andrew on this topic a while back, and I finally got around to listening to this podcast this week. They talk about some of the different things they look at for commodity producers, the cyclical nature of most commodities, and some examples of companies that have been long term outperformers. They also covered some of the commodities that I haven’t dug into as much, from the agricultural commodities to a couple cement producers. For a high level look at commodity producers, this one is definitely worth your time.
AIA Weekly Update
’s weekly update from yesterday is definitely worth a watch. He talked about the bifurcated economy and deficit spending, two trends that don’t show any sign of slowing down. He also got into the various commodities, and why we are starting to see moves across the board. For precious metals, he explained why he is a long term bull, and how the sector is overbought short term. Coal has also started to wake up, and copper had a big move after a mudslide at Freeport’s Grasberg mine in Indonesia. Oil also had a nice move last week, and he got into why energy is the best performer in inflationary environments. He also talked about uranium, how renewable energy is a boondoggle compared to other sources of energy, and how he saw it firsthand in his career. I look forward to these every weekend, and readers will definitely stay up to date and learn a thing or two from watching these updates.
I’ll save readers that are interested the trouble of watching the whole thing. The section on Sable starts at 13 minutes, and they talk about the permit transfer. At 19 minutes, they start talking about federal intervention and the possibility of using an FPSO to bypass the pipeline. You can tell by their reaction that they aren’t thrilled about the idea. We will see what happens from here, but the talk of federal involvement is making the rounds in the California media space.
From these guys view it doesn’t look like Santa Barbara will be approving the permit transfer to Sable. Are you worried about this one at all? How do you see it shaking out if they vote them down at the next meeting?