Fisher Investments Reviews Its 2025 Energy Sector Outlook

Transcript

Ken Fisher:

People have been asking me what my Energy outlook is for 2025. I'm 74 years old. You don't think I got the? I don't got that much energy. I used to have a lot of energy when I was young. You know, I'm just more of a quiet, passive observer these days. But the fact of the matter is, there's some things you can say, and a lot of people don't want to hear them. We as a culture— the global culture—cannot get away from fossil fuel. Oil and natural gas are going to dominate what happens to Energy in 2025.

We are not going to see, if you're my age, in my lifetime, the ability to escape from fossil fuel. Maybe someday we will. But the reality is there's an abundant amount of fossil fuel to be recovered. The laws of physics go against most all the alternatives, one way or another. And even if you can ramp up the alternatives without huge government subsidy, which so far has not been able to be done, the amount by which you can do that doesn't match the growth in demand for energy that lies ahead. And when I say lies ahead, that lying ahead is not a terribly different growth than what we've seen in the past. It is going to be bigger, but not that much bigger. One of the reasons that it becomes bigger, I want you to think this through, is because as economies in the Third World emerge and develop, they inherently consume more energy. And the developed countries can't quite say to them, "Hey, you know, we did. You can't." So, that will occur just as it's occurred in China.

The fact is pricing is very reasonable for fossil fuel. Fossil fuel prices are lower than they were, for example, by good notch, when the Israeli-Gaza conflicts and other Middle East conflicts began. And that's because we have the technology to generate extensive increases in supply of energy. So, I think energy pricing will be mundane. Volume will increase. And in that regard, it will be an amazingly stable world for what's otherwise a volatile commodity. I would not expect in this year to see some huge shift other than short-term volatility, of course, which comes and goes all the time, in fossil fuel prices and therefore in Energy as a whole. And really, that's about all that I know to tell you about this question, which is an important question. But I don't have anything else to tell you other than this is going to be a pretty, what I would consider, relatively quiet Energy and relatively mundane Energy world.

Thank you for listening to me. I hope you found this useful. Hi, this is Ken Fisher. Subscribe to the Fisher Investments YouTube channel if you like what you've seen. Click the bell to be notified as soon as we publish new videos.