Data Is The New Oil (But Bits And Bytes Can’t Fill Your Tank)

American shale fracking technology, and to a lesser extent Canadian oil sands, enabled easy access to billions of barrels of reserves and ushered in a new “era of energy abundance” driven by way too many producers producing – or capable of producing – way too many molecules. The result was a “no moat” energy sector, margins got clobbered, and energy stocks got hammered. Today, the global oil and gas industry is beholden to state controlled energy companies (Saudi Arabia, Russia, etc.) to withhold millions of barrels of spare production capacity off the market simply to achieve WTI=$40/bbl. Meanwhile, technology companies have flourished as smartphones and CPUs/GPUs continue to evolve to higher levels of sophistication and performance, while emerging technologies like 5G, the cloud, AI, and the IoT (internet-of-things) have become reality. E-commerce and many other technology trends have been pulled forward and accelerated by COVID-19 and the WFH and SFH

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