Think Tank Tanks
Exaggeration often leads to derision and exclusion. Therefore it is all the more surprising when a think tank goes out on a limb to make statements that are more sensational than you would find in an American supermarket magazine.
But the Orian think tank has done just that. Orian think tank just quoted – “When analysing the contributing factors that lead up to the six largest wars in the last 150 years there can remain no doubt that the world is far closer to a devastating war now than ever before.”
So, the Orian think tank believes that there is a herd of elephants in the room that nobody has noticed. They believe that we are all so absorbed and blinded by little things in life that we miss the real dangers. The recent petrol shortages are a warning as to what is around the corner. The petrol shortages are blamed on Brexit or Covid or even the DVLA. The Orian think tank believes those excuses are missing the problem entirely.
ENERGY SHORTAGE
North Sea oil is hitting $90 a barrel – double the price over one year ago. Gas prices have increased 5 fold within the space of a year. The Decommissioning of Britain’s nuclear power stations are irreversible which further complicates the energy mix. This is a world wide problem. China has horrendous power cuts right across all of its industrial zones and their solution is to import more coal and Australia is eager to smooth over relations in order to recommence exporting the coal – just in time for the COP-26 conference in Glasgow next month.
GO GREEN
The Orian think tank also believes that as we switch from fossil fuels to green energy it appears that there isn’t a politician in the world that has yet managed to connect the dots.
If you were sitting on billions of pounds and had built up your wealth from oil and gas – what would your strategy be now? In all probability, you would look at switching your investments to sure fire bets and not into a business that will diminish by 99%.
As the use of oil and gas reduces, the price increases. That is unusual as in other assets the price would rise. However, fossil fuels need to be extracted and that is a huge investment that can’t be justified in a diverging uncertain market. We have started far too late in tackling climate change. Unfortunately the irritating Greta Thunberg is correct in most thinks that she whines about and so she’ll be lecturing us for at least 70 years!
POWER PLAY
Supplies of Russian gas via the Yamal-Europe pipeline dropped to 15,021 megawatt hours (MWh) per hour on Tuesday the 28th of September from 35,131 MWh per hour the day before. The Russians have weaponised their fossil fuels.
MEGA-INFLATION
The effect of political intransigence and ill thought out solutions will result in dramatic inflation. All those industries that will forever be dependent on fossil fuels, such as pharmaceuticals, chemicals, transport and heavy industry will experience an enormous increase of costs that will be passed onto the consumer. This on top of out of reach energy supplies will push inflation towards the 1970’s rates.
THE HAVES AND HAVE-NOTS
The financial inequalities between the rich and the poor is unacceptable and is becoming more disruptive to many countries around the world.
ORIAN CONCLUSION
Now here is the hard part to swallow. The Orian think tank has an unimaginable solution. It stated the following: …..”we should keep to the strategy of restricting chlorofluorocarbons, plastics, dirty fuels etc but we should not attempt to go carbon neutral and instead divert all of the funds into the largest research project that mankind has ever embarked on and that is the commercial development of nuclear fission in order to provide unrestricted energy to the world.
WHAT IT MAY MEAN FOR YOU
In a word “Disruption”. How can you plan when there is no road map to follow? Your business is going to go through unimaginable challenges in the years to come and that’s where Directors Circle can help. Call 0333 050 8518.