Two Words Benjamin: Tankers and Pipelines

Remember when I pointed out - in the context of the drive to forge a global agreement on climate change - that Brazil was investing $175 billion (with a B) in hydrocarbons? And not just for shits and giggles either. For national greatness. Turns out that greatness needs a little financing and perhaps even a little sharing o' the greatness. I then posed a question to the global warmists (who are trying to change their name to climate changists, because, like, apparently the globe isn't definitively, like 'ya know, warming), "So how do you think Brazil will vote when it comes down to it? So now we have to ask, with their vast petro loans on the line, how do you think China will vote? The good Professor has the answer.

For that matter, let's speculate how Russia might vote, or Mexico, or Venezuela, or Iran. See where this is going? Of course they are all hoping we (as in the USofA) cut our emissions, so they can sell us their energy resources after we decide we actually want comfortable homes, powerful cars, light in the evening, hot food, cold drinks, etc...

I try not to give investing tips on this blog because I do not believe in the value of "stock tips" but this is more of a macro call. If cap and trade passes, the rest of the world will smell opportunity and move in to dominate energy while watching us force atrophy upon our thriving domestic energy sector. So here goes. Assumption one: Americans will not give up their energy-intensive standard of living. Assumption two: Climate legislation will reduce the amount of domestically produced energy. Assumption 3: Alternative energy efforts will fail to fill the gap. Conclusion: We will have to import much more of our energy. Implication: There are only two ways to import energy into the US, tankers and pipelines. There you have it my friends, the equivalent, for Barack Obama's America, of Mr. McGuire's "Just one word. Are you listening? Plastics."

UPDATE: Bahrain will spend $20 billion on developing their hydrocarbon industries. How will they vote on massively reducing demand for hydrocarbons? Likely, thumbs down.

UPPDATE: Algeria will invest $63 billion into producing hydrocarbons. I'm guessing they'll want to see a return on that investment. Killing demand for hydrocarbons? Unlikely.