Trump’s First Moves, EV Crises, Your Next Big Stock Opportunity!
Little economic news this week but a few items near weeks end so we will have a look into some on what politics are doing to the economy. And an in depth look into a real environment changer.
Of course the big news is Trumps inauguration and all his immediate actions that are all over the news. It was like no other transition in history. So far Trump is doing what he said he would and what he was voted in for. Interesting is an Epoch Times survey of more than 26,000 readers. This is a large sample for a survey and I would describe the news outlet of somewhat leaning right. These are the key policy areas their readers think the incoming administration should focus on. I list the combined percentage of very important and extremely important items -
Border Security and Deportations - 98%
Government Spending and Debt Reduction – 98%
Certainly on day one there was unprecedented action at the southern border. Trump declared it a national emergency and will move the military in. Also he declared the Mexican drug lord gangs terrorist groups. Not much on the government spending problem but Trump will face the debt ceiling being reached on day 2 of his presidency. Although a compete freeze on new government hiring with limited exceptions. Federal workers will have to report to the office in person. No more “work from home, that should improve productivity.
Military Strength and National Security - 95%
Trump said he will make the military strong, but only action is he offered military personnel who were dismissed for refusing Covid shots to come back and will get full back pay. There was over 8,000 that quit because of mandatory shots but few came back when the mandate was ruled illegal in 2023. Perhaps full back pay that could amount to around 3 years pay might entice more? He said he would invoke an archaic federal law, the Alien Enemies Act of 1798, to eliminate “foreign gangs and criminal networks.” Something is needed with the high crime, lets see what he actually does.
Election Integrity and Voting Laws - 92%
Energy Independence and Fossil Fuel Production – 93%
Not much done on this front yet but we all know he favours oil&gas development and says he will reduce development bureaucracy. I wonder what it will take to undo all the last minute development areas that Biden blocked for oil&gas development? How will he fill the SPR?
And at the bottom of the list Climate Change and Renewable Energy Investment - just 15%
Some immediate action was taken here, opting out of the Paris climate accord, Trump is revoking mandates for EVs and permitting for wind energy projects was halted.
Trump is delaying the ban of Tik Tok, perhaps he hopes a deal can still be made. Crypto currency went wild on hype as 'TRUMP' crypto debuted on the weekend. It soared from $12 to $78. I wonder who is benefiting from this? Probably a Musk and Trump idea.
There were no tariff announcements as it sounds like this will be held off to February 1st, but the Mexican peso fell anyway and the Canadian loonie fell to a 5 year low, hitting $0.69 and bouncing back some.
Smooth and Peaceful Transition?
Legacy media harped how the transition was peaceful and smooth but I don't really see it that way. Biden, Harris, Clintons and Obama were there but almost looked like ghosts going through motions.
The amount of initiatives the Biden Administration did ahead of the transition were unprecedented and violent in nature although not physical. Spending all the budget they could, selling off border wall pieces, banning areas for oil&gas development, extra funding for Ukraine and passing many other laws to impede Trump's progress.
On Trump's first day, multiple lawsuits were filed against the Trump administration regarding the Department of Government Efficiency (DOGE). At least four lawsuits were filed on Jan. 20 by multiple groups in a federal court in Washington.
Another thing unprecedented with this transition is pre-emptive pardons that were never heard of before. Hours before the end of his term, they came up with a better name, Joe Biden issued protective pardons for several people, a list that included Anthony Fauci, House members who investigated the Jan. 6 Capitol riot, and members of the Biden family.
What is the Biden Crime family (as some call them) guilty of and the members who investigated the January 6th riot? That was probably just another hyped up incident to go after Trump. Apparently the committee destroyed all the information they had over the 2 years. Liz Cheney (pre-emptive pardon) is suspected of witness tampering in regards to January 6th. Maybe that is illegal?
They claim, they worry what Trump might do, but Trump says the DOJ's criminal pursuit of political opponents is now ending. Lets see what he actually does?
We all know what Fauci could be guilty of, with his Covid shots that caused millions of deaths and injuries and with gain of function research among that. On that topic his cohort Dr. Peter Daszak just got debarred. After an eight-month investigation, the U.S. Department of Health and Human Services (HHS) cut off all funding and formally debarred EcoHealth Alliance Inc. (EcoHealth) and its former President, Dr. Peter Daszak, for five years based on evidence uncovered by the Select Subcommittee on the Coronavirus Pandemic.
And on the legal issues, A Canadian Federal court will hear the case February 13/14 that Trudeau's Prologue of parliament was illegal. I think it was because it was solely just to benefit the liberal party but lets see what the court says. Who knows, Trudeau has appointed a lot of liberals in the courts.
EVs going the wayside in Canada too
Automakers in Canada are calling for the end of electric vehicle sales mandates because of the sudden pause of federal EV incentives and what they say is the slow build-out of charging infrastructure. Transport Canada says the Incentives for Zero-Emission Vehicles Program has been paused as “funds have been fully committed.”
The department says more than 546,000 vehicles have been sold or leased with incentives since it began in 2019. It works out to $2.73 billion in subsidies , more unnecessary Trudeau spending.
Climate rant from Bill Maher and EV Batterries up in smoke
As I mentioned before, so it is no surprise that L.A. Police have arrested three arsonist suspects.
In a scathing monologue, Bill Maher first pointed out to the climate cult that mandating EVs and shaming people for their carbon footprints means nothing when the government can’t even manage wildfires. “You know what the absolute worst thing for the environment is? Wildfires. A 2022 study found that the smoke from just the two in 2020 wiped out 18 years of carbon reduction in the state—which means we suffered the pain of driving those early-model Priuses for nothing,” Maher quipped.
As if things could not get worse for EVs and the climate narrative. A fire broke out last Thursday at the Moss Landing Power Plant, containing the largest lithium battery storage in the world at 750 megawatts. Fires involving lithium batteries, as seen with electric vehicles, are notoriously difficult to extinguish and the power plant burned uncontrollably for days. It is reported that 80% of the batteries burned up.
"There's no way to sugarcoat it. This is a disaster, is what it is," Monterey County Supervisor Glenn Church told local media outlet KSBW-TV. However, Church did not expect the fire to spread outside the perimeter of the plant. The plant experienced smaller fires in 2021 and 2022. The energy storage facility plays a massive role in stabilizing California's power grid. Just terrible to say but maybe enough homes burned down they won't need the electricity.
As I commented many times, the battery technology is simply not good enough yet and another elephant in the room is that it is all hazardous waste and there is no plan to deal with that now and further down the road as it increases.
Now something that is really helping the environment, causing no bad side effects and curtailing a much more dangerous emission than carbon is -
Zefiro Methane - - C:ZEFI, OTC:ZEFIF - - - Recent Price - C$0.69
Entry Price - $0.90 - - - - - - Opinion – strong buy
ZEFI's subsidiary, Plants & Goodwin (P&G), has been awarded eight projects by the state government of Ohio. The work includes Zefiro's environmental remediation specialists plugging 50 oil and gas wells located across the state to mitigate an array of potential public health threats.
The effort to seal these potentially noxious sites has been led by Zefiro senior VP of business development Luke Plants. P&G crews have already plugged 20 per cent of the sites that comprise this initiative and currently have four full-sized rigs deployed in communities throughout Ohio to help remediate the project's remaining wells.
Zefiro's continuing work in Ohio is the latest in a series of commercial initiatives that the company has undertaken to expand its operational footprint across North America. This includes opening a new operations facility in West Virginia, completing strategic acquisitions of Ohio and Pennsylvania-based entities that bolster the company's client service capabilities, and working with numerous government partners throughout the continent, including the U.S. National Park Service, the State of New York, the Commonwealth of Pennsylvania and the Province of Alberta, on numerous landmark well remediation initiatives.
Zefiro's Luke Plants was featured within the U.S. Department of the Interior’s “Orphaned Wells Program Annual Report to Congress”.
Mr. Plants’ quote, which appears on Page 49 of the report, is reprinted below.
“Thanks to BIL funds, my business has established a robust training program that includes a comprehensive six-month apprenticeship for new hires. Our equipment now meets or exceeds industry standards, creating a safer working environment and ensuring that well-plugging is performed to a high standard, maximizing value for the American public. With our current headcount of 135, we've expanded our workforce by 40% as a direct result of this funding. BIL projects have also stimulated local economies by increasing demand for lodging, food services, and contract materials. Moreover, the predictability of future funding opportunities through the BIL has given business owners the confidence to invest in additional fixed assets, further stimulating American manufacturing. None of these positive economic effects would have been possible without federal stimulus support.”
The company is growing very fast but the market has not caught on to this new company yet.
They are also expanding into Alberta Canada
Zefiro secured a membership position within the Drilling and Completion Committee's mature asset strategy working group, to stem the proliferation of orphaned and marginal oil and gas wells throughout Alberta, Canada. Zefiro founder and CEO Dr. Talal Debs first acknowledged the company's involvement while appearing alongside government of Alberta assistant deputy minister for air, climate and clean technology Patrick McDonald as a presenter and panelist at the United Nations' 2024 Climate Change Conference (COP29) in Baku, Azerbaijan.
There is estimated to be 170,000 sites throughout Alberta that can leak methane gas. Methane gas is capable of being 25 to 85 times as potent as carbon dioxide emissions in terms of trapping heat in the atmosphere.
As I estimated before, each site is approximately US$100,000 to remedy, so Alberta alone represents a $17 billion revenue opportunity.
In a global news report Alberta’s energy minister is promising strong action by next fall to clean up the province’s growing backlog of unreclaimed oil and gas sites. The estimates in this article are a lot larger than highlighted above. Alberta government figures show the province has nearly a half-million energy wells. Less than a quarter are reclaimed.
The squeeze between growing environmental liabilities and falling revenue has many worried about who will pay the cleanup bill. The tab has been estimated at anywhere from Canadian $59 billion to $260 billion.
Check this 3 minute CTV News video from a year ago on the Alberta orphan well problem. These are wells from companies that are gone or are bankrupt so the reclamation liability is in limbo. Also reclamation rules are too lax.
This is a real environmental problem not some poor science conjecture of man made carbon causing climate change. I take heart that investing in Zefiro I am doing something that obviously helps the environment.
The chart looks very good, the stock is down near support and a wedge pattern has developed where it has started an upside break out. I expect the stock will fill the gap going to about $1.10 and we will see from there.
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