Cracks in the Energy Supply--September 2022



By Jim Thompson

Climate Change energy transition plans seem to have hit a bump in the road, especially for stationary generation sources (read: anything but transportation).  The Ukraine War plus slower than anticipated projections of transitions to recognized green energy sources seem to be causing some questions.

To borrow an old cliché, while North America has a cold, Europe has pneumonia.  

This may be a fortunate occurrence for North American linerboard and medium producers.  What looked like a coming softening in domestic demand may be counteracted with a stronger European import pull.  

Further, energy in North America may give producers a further edge when it comes to manufacturing costs.

For years, I have been saying to mills everywhere--don't dismantle idled but serviceable old energy assets, you just may need them again someday.

Energy is always political.

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