The Permian Energy Development Lab (PEDL) is a new collaboration focused on building on the Permian Basin’s status at the center of the global energy economy.
On Thursday PEDL announced the signing of a memorandum of understanding among seven New Mexico and Texas colleges and universities, two national laboratories, and a center for advanced energy research. The MOU reflects a shared goal of conducting advanced energy research and deployment, educating the next generation of energy professionals, and supporting energy-intensive communities and the natural resources they depend on.
Participating institutions to date include the Houston Advanced Research Center, Midland College, the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), New Mexico State University, New Mexico Tech, Odessa College, Sandia National Laboratories, The University of Texas at Austin, The University of Texas at El Paso, and The University of Texas Permian Basin. The Cynthia and George Mitchell Foundation launched the effort and continues to incubate the startup organization.
George Mitchell is the acknowledged Father of Fracking in Texas. His success with Mitchell Energy led to his construction of the now wildly popular Woodlands development in North Houston. And why is it wildly popular? Because it is north of the Bush International Airport. Locate in the Woodlands and one does not fight the traffic from Houston north to the airport.
Permian Energy Development Lab is a big deal as there will finally be a constructive force from universities advocating for the Permian Basin rather than wanting to shut it down entirely. Note, the Permian Basin is now producing the lion’s share of U.S. energy production.
I am bullish on crude oil prices. Price has corrected 50% from the $130-140 high to the low $60s. Already it has added ten bucks to close today at $74.37. Europe had given up on its no internal combustion engines in cities by 2035, oh you did not see that in the mainstream media? The absence of a battery breakthrough, shortage of thin steel, difficulty of mining rarer earth metals in dirty Chinese mines, the vulnerability of EU to Russia’s energy, well, sober up climate alarmists.
So far, so good for Nustar NS, the major pipeline company in the Permian Basin. A higher low at $14.50 has carried prices to $15.62. It now needs to take out the previous high of $17.50. The dividend is 10% and as Joe Biden would put it, making more money than God.
The SPX (4050 today) is challenging the last March high and now has its sights set on the February high of 4175. We are bullish to that level.
