Posting because Yergin’s view perhaps reflects what Buffett/Munger are thinking behind recent and large investments in OXY and CVX.
At Davos, a Sense of ‘High Urgency’ About Energy Security
The invasion of Ukraine is an “epochal moment” that will end Russia’s status as an energy superpower — and increase risks for other nations, says the historian Daniel Yergin.
What are the implications of the Russian invasion of Ukraine for the energy markets?
People search for analogies. The last really big one was 1973 [the Arab oil embargo], which was a long time ago. We are now in the midst of seeing the biggest disruption in world energy markets in modern times. This is because it is not only oil. It is also natural gas. It is coal. And, increasingly, this is occurring within the wider boundaries of competition between the world’s two nuclear superpowers.
It was a different world after the 1973 crisis than before, and it is going to be a different world after this crisis than before. I think this is the epochal moment.
In addition to oil, natural gas and coal, hopefully it’s also about small nuclear power reactors.