Seeing a desire from the Trump admin. to grow the energy footprint, says Kimmerridge's Ben Dell

Key Concepts:

• Energy investment (oil, gas, battery storage, LNG)
• US-Middle East energy relations (UAE, Mubadala, Adnoc)
• LNG (Liquefied Natural Gas) expansion and its role in decarbonization
• Energy policy under the current administration
• Alternative energy assets
• AI and power convergence
• Energy footprint growth (domestic and international)
• Low-cost energy on demand with a low carbon footprint

1. Kimmeridge's Focus and Current Energy Landscape

• Kimmeridge is an investment firm focusing on alternative assets in the energy sector.
• The energy space is experiencing a convergence with the tech space, particularly around AI and power.
• The current administration aims to grow the energy footprint both domestically and internationally across oil, gas, and battery storage.

2. Abu Dhabi Office and Middle East Relations

• Kimmeridge opened an Abu Dhabi office due to long-standing relationships in the UAE with Mubadala and Adnoc.
• The firm sees growing opportunities for energy investment in the region and in areas like India, which is experiencing rapid energy consumption growth.
• There's a significant appetite for investment from the Middle East back into the US energy sector.

3. Shifting Investment Landscape and Administration Policies

• The previous administration focused on carbon capture and green energy.
• The current administration is interested in opening up more drilling and production.
• The administration has aimed to lower oil prices to reduce gasoline prices for consumers, impacting inflation.
• In contrast, the administration supports LNG expansion, including gas-fired power generation.
• Kimmeridge owns Commonwealth LNG and received conditional non-FTA approval.

4. LNG's Role in Decarbonization and Foreign Policy

• The administration understands LNG's role in decarbonizing other countries by replacing coal, similar to its impact in the US.
• The US aims to be the preferred LNG supplier for emerging markets, aligning with foreign policy objectives.

5. Investment Certainty and Long-Term Projects

• Energy projects, like LNG and upstream ventures, have a 20-year time horizon.
• Investors seek certainty that their investments will be protected and can be developed over time.
• Kimmeridge aims to deliver low-cost energy on demand with the lowest possible carbon footprint, regardless of administration changes.

6. Oil vs. Natural Gas Market Dynamics

• The administration's approach differs between the oil and natural gas markets.
• Oil: The administration has aimed to lower prices.
• Natural Gas: The administration supports permitting and LNG expansion.

7. Notable Quotes

• "We want to deliver is low cost energy on demand, with the lowest possible carbon footprint." - Ben Dell, Kimmeridge

8. Synthesis/Conclusion

The energy sector is undergoing significant shifts due to technological advancements, evolving geopolitical dynamics, and changing administration policies. Kimmeridge is positioning itself to capitalize on these trends by expanding its presence in key regions like the Middle East and focusing on delivering low-cost energy solutions with a reduced carbon footprint. The firm recognizes the importance of LNG in decarbonization efforts and aims to secure long-term investment certainty in a dynamic political landscape.