C.O.B. Tuesday

Today we had the pleasure of hosting William Clouston, Party Leader of the Social Democratic Party (SDP) in the United Kingdom. William has served as Party Leader since 2018 and was re-elected in March 2020. He originally joined the SDP in 1982 and spent four years in the Conservative Party, becoming a District Councilor and serving on Tynedale Council. He holds both undergraduate and master’s degrees in Urban Planning and Property Management. We became interested in connecting with William after reading the SDP’s Energy Abundance paper published in September (linked here). Founded in 1981, the SDP is an economically left leaning and culturally traditional political party. Its flagship “Social Market” economic model views the private and public sectors not as opponents but as complementary parts of the same society. We were delighted to connect with William for an insightful discussion on the UK and Europe’s energy policies and beyond. We covered a wide range of topics in our conversation, beginning with the purpose and motivation for writing Energy Abundance, including Britain’s current energy crisis, marked by too little power, high costs, and overreliance on imports. William shares the history of the government’s role in energy policy and the SDP’s argument for a return to government-led energy development, starting with building gas and coal plants. He discusses reactions to the paper, the urgency of rebuilding domestic energy capacity, and the importance of distinguishing cost and value when considering investing $150 billion in grid stabilization and baseload generation. We compare the UK’s energy landscape to Germany and the U.S., the risk of further productivity decline if energy issues persist, and public awareness of the energy crisis, which remains politically constrained by cultural and institutional apathy. We explore the SDP’s economic and political philosophy, including the party’s support for strategic trade protection and tariffs and its cultural traditionalism, emphasizing family as the foundation of society, nation-states, borders, and conventional values. We touch on how energy debates are often constrained by social norms, particularly around net zero, the SDP’s 10-year energy plan proposing a state-run, vertically integrated utility, the UK’s historical “dash for gas” and current overreliance on renewables, and the party’s support for large-scale nuclear, favoring its “brute force” capacity and proven designs. We ended by asking William for his vision of the UK in ten years. We learned a lot and greatly appreciate William for sharing his deep knowledge of British politics, policies, and culture with us all. To start the show, Mike Bradley noted that the S&P 500 is up ~2% this week on better than expected quarterly results from the Big US Banks. AI & Electricity mania remain “the” key equity market drivers, which has also pushed the Consumer Discretionary, Technology & Utilities sectors higher this week. On the crude oil market front, WTI has sunk to ~$59/bbl, partly on the Gaza Peace Agreement but mainly due to growing concern with the 2026 global oil supply surplus. Both the IEA and OPEC published their monthly oil outlooks, with the IEA projecting a ~4mmbpd 2026 surplus, which is ridiculously higher than all other estimates. The reason oil prices seem to be moving lower this week (versus previous weeks) is because oil traders are pressing their bearish bets now that crude oil prices have finally broken to the downside. On the energy equity front, one of this week’s biggest Energy/Electricity equity movers is Bloom Energy (up ~30%) on news Brookfield struck a $5B strategic partnership with Bloom to be their preferred fuel cell supplier at Brookfield’s global AI factories. Q3 Energy results kick off this week with most investors expecting to hear a softening frac story but a scaling up of their power business. Most investors

Today we were thrilled to host Julien Dumoulin-Smith, Managing Director of U.S. Power, Utilities, and Clean Energy Research at Jefferies. Julien joined the firm in July 2024 after serving as a Senior Research Analyst at Bank of America Merrill Lynch and as an Executive Director at UBS. He holds an MBA and a B.S. in Applied Mathematics from Columbia University. Institutional Investor magazine has ranked Julien as a #1 double-ranked analyst in both Utilities and Alternative/Clean Energy, and he was inducted into the II Hall of Fame for his cumulative accomplishments. It was our pleasure to welcome Julien to our office and hear his thoughtful perspectives on the ever-evolving energy and power landscape. In our discussion, we explore Julien’s coverage universe, which he describes as “the full electron and derivatives landscape” spanning utilities, IPPs, renewables, gas plants, industrial adjacencies, and service providers. We discuss the influx of new investors entering power and utilities, Julien’s observation that the biggest surprise isn’t data center proliferation, but rather how tech companies are paying premiums for power to secure supply, and how utilities once seen as “defensive” are now showing growth characteristics. We touch on the tension between tech companies’ need for rapid, large-scale power and their reluctance to become capital-intensive or FERC-regulated, why we’re not seeing more long-term offtakes with existing power plants and how state level politics play into it, and how legacy players, new entrants, and regulators are all adapting to a power market being reshaped by AI demand, infrastructure bottlenecks, and novel deal structures. Julien shares that rising inflation across the economy is showing up in utility bills and expresses concern that LNG developers or data centers could be scapegoated for higher gas and power prices. He highlights the parabolic rise in the value of capacity and reliability, the drivers of power inflation including turbine shortages and rising capital costs, whether utilities are properly incentivized to control costs, the role of demand-response mechanisms, and how regulatory and state-level actions are shaping markets. We cover power market scenarios for high and low demand cases, the role of innovation in batteries, fuel cells, and other technologies, and the tension between patching existing systems versus building large-scale infrastructure. We also discuss constraints on ramping renewables, the growing influence of behind-the-meter power, implications for Q3 earnings, and much more. We covered a lot of territory and greatly enjoyed the conversation. To be added to Julien’s research distribution list, click here. To start the show, Mike Bradley noted that markets continue to be mostly focused on the U.S. Government shutdown. The 10-year bond yield continues to trade sideways at ~4.1% with economic reports on pause until the government reopens. Internationally, Japan’s Liberal Democratic Party elected Sanae Takaichi (who is viewed as fiscally expansionary), which some believe increases the risk of an unwind of the long-standing Yen carry trade. The S&P 500 is up roughly 80bps since the government shutdown, with Healthcare and Technology outperforming. He highlighted AMD’s chip deal with OpenAI, which added roughly $70B in market cap, and Oracle’s pullback on AI cloud margin concerns. On the crude oil market front, WTI price has increased modestly this week due to OPEC+ announcing a smaller than expected ~135kbpd oil production increase for November. While this could widen the 2026 surplus, traders are weighing when and how prices might react amid limited OPEC spare capacity. On the energy equity front, he pointed out FERMI America’s strong IPO debut and continued investor enthusiasm for electricity generation. He ended by flagging the upcoming Rockpoint Gas Storage IPO (280bcf in Canada &

We are back on the road this week for an insightful visit with Ray Zage, CEO of Tiga Investments, and Shon Hiatt, Director of the Zage Business of Energy Initiative and Associate Professor of Business Administration at the University of Southern California. Ray is a seasoned global investor who has led Tiga since 2017. He began his career at Goldman Sachs and has held roles in Singapore, New York, and Los Angeles. He serves on multiple boards and also advises early-stage technology ventures. Shon joined the USC Marshall School of Business from Harvard in 2014 and is also a Distinguished Fellow at the Hamm Institute for American Energy. His research focuses on entrepreneurship, global strategy, innovation and sustainability. This week, USC is hosting its annual Energy Business Summit (details here). We were delighted to spend time with Ray and Shon to hear their perspectives on today’s evolving academic and energy landscape. In our conversation, we discuss the Zage Business of Energy Initiative and its mission to build a pipeline of future energy leaders equipped to develop practical investment approaches and spark innovation and entrepreneurship across industries. Shon reflects on his research in Europe, noting parallels with California’s energy challenges, and Ray shares his motivation to support broader, more objective research in energy beyond just “cleanliness,” shaped in part by his experiences across Asia and his perspective on long-term, balanced energy policy. We explore the history of energy at USC, California’s refining and energy policy challenges, lessons from Asia, China, and Singapore’s long-term planning, the growing energy needs of data centers in Asia versus the U.S., and the strategic positioning of countries like Singapore. We touch on the USC Energy Business Summit and its lineup of topics from energy storage and renewables, nuclear energy, and AI and energy demand, as well as the growing interest among students in pursuing energy careers. We address global electricity demand trends, energy affordability in emerging economies, the impacts of geopolitical instability on energy security, China’s energy strategy, the global competition for raw materials, nuclear power developments, Silicon Valley’s growing embrace of nuclear and natural gas, the need for durable laws to support long-term energy investment, and more. We greatly enjoyed the discussion and appreciate Shon and Ray for joining. Mike Bradley kicked us off by noting that markets were largely focused this week on the impending U.S. government shutdown. Over the past 50 years, there have been 21 shutdowns with an average length of 7-8 days. The longest shutdown was 35 days (Dec. 2018 to Jan. 2019), which occurred during President Trump’s first term. On the bond market front, the 10-year bond yield (4.15%) was down marginally this week on the impending shutdown. Bond markets are mostly focused on employment reports this week (JOLTS Job Openings, Initial Jobless Claims and Nonfarm Payrolls) which would be delayed in a shutdown. On the broader equity market front, the S&P 500 seems to be in “no man’s land” at least until investors see the outcome and duration of this impending shutdown. On the crude oil market front, WTI price was down ~$3/bbl (~$63/bbl) this week for a couple potential reasons. Oil traders are growing concerned that OPEC+ could announce an oil production increase for November of 500kbpd (and 1.5mmbpd over the next three months) at their October 5th Meeting, which would increase the 2026 global oil surplus even further. In addition, President Trump’s Gaza Peace Plan may also be weighing a little bit on oil price because it eliminates any “perceived” war premium in oil prices. He ended by discussing the impending Fermi America IPO (FRMI). Fermi, co-founded by former Energy Secretary Rick Perry, is a planned 11 GW energy and data center c

Today we had the exciting opportunity to host Thomas Popik for a power-focused discussion. Thomas is the Chairman and President of the Foundation for Resilient Societies, a non-profit dedicated to strengthening the resilience and recoverability of critical infrastructure. In addition to his volunteer leadership at the Foundation, Thomas serves as a Principal at Geosegment Systems Corporation. He holds an MBA from Harvard and a B.S. in Mechanical Engineering from MIT. The Foundation for Resilient Societies is distinguished by the depth of its scientific, economic, and legal expertise. Several of its directors have held senior policymaking positions in the U.S. Government and now continue their societal contributions through private action. The Foundation has been instrumental in advancing policies and recommendations to better protect the electrical grid and other vital systems from emerging threats. We were thrilled to host Thomas. In our conversation, Thomas outlines the mission of the Foundation and how its nonprofit status strengthens credibility, recruitment, and advocacy. He highlights the rising frequency of outage “near misses” that the public is largely unaware of, the Foundation’s engagement with FERC, NERC, and DOE, and how this work has helped shift official recognition of risks, including DOE’s recent warning of up to 800 blackout hours per year by 2030. Thomas traces how we arrived at this level of instability, with factors including a net loss of ~1% per year in dispatchable capacity over the past decade, the retirements of coal, older gas, and petroleum-fired plants, and their replacement with wind and solar, which lack dispatchability. He shares market history, from the pre-2000 overbuild that drove up rates, through the 2010s when flat load growth masked declining capacity, to 2024, with excess capacity gone and the grid maxed out. Thomas outlines near-term solutions for grid stability, including halting premature retirements of dispatchable generation, enabling the use of backup generators at critical infrastructure, and improving legal and regulatory mechanisms to prevent retirements and declare emergencies. On the consumer side, we discuss tools such as dynamic pricing to discourage peak-time consumption, shifting habits like EV charging, and aggregating flexible load reductions from schools, homes, and businesses. Thomas also highlights the importance of public messaging to encourage rapid conservation during emergencies and notes longer-term measures including building new dispatchable generation. As mentioned, the DOE Resource Adequacy Report published in July is linked here. We learned a lot from our conversation with Thomas and greatly appreciate him joining us. To start the show, Mike Bradley noted that markets seemed to be in “no man’s land.” On the bond market front, the 10-year bond yield has risen over the last week, despite the Fed following through with a 25 basis-point interest rate cut and signaling the potential for two more cuts this year. Looking ahead, employment reports, rather than inflation reports, are likely going to be the Fed’s main focus. On the broader market front, the S&P 500 continues to hit all-time highs but is beginning to feel like it’s in no man’s land given that the FOMC meeting is in the rearview mirror and Q3 earnings reports are not on tap for several more weeks. On the crude oil market front, WTI price continues to trade in the low to mid $60s/bbl due to the give/take of Russian oil sanctions/energy infrastructure damage versus concerns of a 2026 global oil surplus keeping a ceiling on oil prices. On the electricity/energy equity front, he highlighted Landbridge Company’s strategic partnership with NRG Energy on a potential data center in the Delaware Basin and noted that Governor Shapiro of Pennsylvania warned this

Today we were delighted to welcome KR Sridhar, Ph.D., Founder, Chairman, and CEO of Bloom Energy. KR’s academic background includes a Ph.D. in Mechanical Engineering, a Master’s in Nuclear Engineering, and a Bachelor’s in Mechanical Engineering. Before founding Bloom, KR served as Director of the Space Technologies Laboratory at the University of Arizona, where he led a NASA project to develop fuel cells capable of producing oxygen for future Mars missions. That breakthrough research ultimately inspired the founding of Bloom Energy in 2001. Bloom went public in 2018 and is a leader in solid oxide fuel cell technology, delivering always-on, on-site power. Its systems convert natural gas, biogas, or hydrogen into electricity without combustion, helping power data centers and hospitals to microgrids and industrial facilities and beyond. We were thrilled to visit with KR to discuss fuel cells, the evolving power landscape, Bloom’s progress, and what lies ahead. In our conversation, KR shares reflections on the past 24 years of technology development since founding Bloom in 2001 and his original vision for the company, the shift from the mechanical/industrial age to the digital age, and the opportunity he saw to support rising energy demand driven by economic growth. We discuss Bloom’s high-temperature solid oxide fuel cells, the history of the underlying physics stemming from an 1890s patent, product development and commercialization, and KR’s reliance on top-tier, seasoned venture investors willing to commit capital and time. We explore the advantages of being in Silicon Valley with access to risk capital and highly skilled engineers, Bloom’s strategic choice to focus on natural gas as a commercially viable fuel, and KR’s thesis on distributed electricity as a way to provide access, affordability, and sustainability. KR discusses Bloom’s fuel cell technology and strategic design choices, highlighting the application of Moore’s Law to drive annual cost reductions, and outlines the target market and growth trajectory, focusing on AI data centers and the increasing need for on-site power. He emphasizes the advantages of Bloom’s modular on-site power solutions, commercial adoption milestones, and the company’s cost-effectiveness compared with traditional turbines and engines. We touch on Bloom technology’s scalability from powering a store to a full data center or factory, their supply chain and ability to scale rapidly to meet growing demand, the technology moat between them and any other competitor, and Bloom’s relationship with natural gas producers. We had a hard time ending the discussion, but to conclude, we asked KR for his vision for Bloom ten years from now. He shared an inspiring vision for abundant, affordable, accessible, and sustainable electricity. As mentioned, Bloom’s recent white paper on fuel cells is linked here. We greatly appreciate KR for sharing his time and unique insights. To kick us off, Mike Bradley noted that all eyes are on Wednesday’s FOMC Rate Decision Meeting, with consensus expecting a 25 basis-point interest rate cut and two additional 25 basis-point rate cuts through year-end. He emphasized that Wednesday’s rate cut is fully consensus/dialed in and wouldn’t be surprised if the week proves to be more of a “buy the rumor, sell the fact.” Furthermore, Chairman Powell’s press conference tone will be extremely important in determining how aggressive interest rate cuts could be through year-end. On the broader market front, the S&P 500 has historically risen ~0.5% on average one week following the last three interest rate cuts, so there could be some very-very modest follow through this week. Equity market observers are hopeful that a series of interest rate cuts will allow market breadth to expand beyond AI/Big Tech stocks, which currently comprise ~35% of the S&

It was our pleasure to welcome back our good friend Roger Pielke Jr., Author of The Honest Broker on Substack and Senior Fellow at the American Enterprise Institute, for an insightful discussion on the U.S. Department of Energy’s climate risk assessment report on the impacts of greenhouse gas emissions (linked here). Roger is a Professor Emeritus in the College of Arts and Sciences at the University of Colorado Boulder, where he previously served as a professor in the Environmental Studies department for over 23 years. His research focuses on science and technology policy, the politicization of science, government science advice, and energy and climate. The Honest Broker reaches more than 36,000 subscribers in over 160 countries. We always value Roger’s perspective on the evolving climate policy and energy landscape and were thrilled to visit with him. In our conversation, Roger provides context for the DOE report, including the history of U.S. climate regulation and key milestones such as the Clean Air Act, Massachusetts v. EPA classifying CO₂ as a pollutant, and the endangerment finding under the Obama Administration. He outlines both the constructive discussions and contentious debates the report sparked as well as challenges in climate science discourse where debate is polarized along partisan lines and questions or alternative views are often penalized. We discuss energy demand beyond Western-centric perspectives and the importance of objective, fact-based discussion in balancing emissions reduction goals with realistic energy needs and technological development. Roger shares his perspective on the political implications of the DOE report, including how it could influence the endangerment finding, the low scientific bar required under the Clean Air Act, the need to democratize climate science for broader public understanding, the importance of constructive debate among experts, the risk of overly aggressive emissions policies on energy costs and reliability, and the necessity of balancing climate action with political and economic realities. We explore how rising energy demand drives innovation, the actual outcomes of climate policies versus their intended goals, how the 2009 endangerment finding is outdated and needs updating to reflect current science, Roger’s assessment of the strengths and criticisms of the DOE report, and his recent attendance at the Abundance Conference, where he observed bipartisan engagement and discussions on expanding access to energy and improving living standards. We cover the American Enterprise Institute’s nonpartisan mission and focus areas including technology, science, energy, and higher education, the value of fostering “intellectual hospitality,” the role of experts in democracy, the importance of leadership in preserving institutional integrity, the need for healthier, fact-based discussions on climate and policy, and much more. We greatly appreciate Roger for joining and sharing his expertise and insights with us all. As you’ll hear, we reference a few items in the discussion. Steven Koonin’s opinion piece published Monday in the WSJ is linked here. Roger’s post, “What is the Scientific Threshold for GHG Endangerment?” is linked here and his piece on the climate report titled “A Red Team Climate Report: To correct course, we need open, respectful and informed debate” is linked here. For additional reading, Andrew Dessler’s critiq

It was our honor to welcome His Excellency Mohamed Al Hammadi, Managing Director and CEO of the Emirates Nuclear Energy Company (ENEC) and Chairman of the World Nuclear Association (WNA), along with Dr. Sama Bilbao y León, Director General of the WNA. H.E. Al Hammadi has served as CEO since 2008 and has led  ENEC in successfully delivering the UAE Peaceful Nuclear Energy Program, focusing on the implementation of the highest national regulations and international standards of safety, security, quality, transparency and non-proliferation in civil nuclear energy. Prior to joining ENEC, Al Hammadi was General Manager of the UAE Federal Electricity and Water Authority and has over two decades of experience in the power transmission utility sector. Dr. Bilbao y León became Director General of the WNA in 2020 and has had an extensive career in nuclear, with over 20 years of experience in nuclear engineering and energy policy, serving in industry, academia, and international organizations. We were thrilled to host Al Hammadi and Dr. Bilbao y León ahead of this week’s 50th Annual World Nuclear Symposium in London (agenda linked here) and to hear their perspectives on the UAE’s nuclear success story and the broader global nuclear energy outlook. In our conversation, we explore the UAE’s Barakah Nuclear Power Plant project and its record-setting progress as a global example for new nuclear programs, trends in rising power needs from hyperscalers and opportunities for nuclear energy to provide reliable baseload electricity for data centers and AI infrastructure, and the growing political, public, and financial acceptance of nuclear energy. We discuss the geopolitical and economic impacts of nuclear development, including national energy security, economic diversification, and industrial competitiveness, the UAE’s willingness to share expertise in project management, legal frameworks, and contracting models, and the growing interest in nuclear from Southeast Asian nations, Central Asia, and Africa. Dr. Bilbao y León previews the upcoming World Nuclear Symposium, designed as an action-oriented, working conference with key themes including making nuclear projects bankable and advancing financing frameworks, and featuring attendees from governments, investors, hyperscalers, manufacturers, and legal and financial sectors. We cover lessons learned from the UAE’s Barakah Plant, including the benefits of building multiple units, standardizing processes, and investing in talent and supply chains, the need for manufacturing capacity, skilled labor, and legal and financial expertise to enable large-scale nuclear deployment, and the advantages of global nuclear partnerships. Al Hammadi shares insights on the evolution of the UAE’s nuclear vision, the role of rigorous planning and standardization in driving efficiency gains, the balancing of government and private capital that enabled Barakah’s on-time and on-budget delivery, and strategies for applying the UAE’s expertise, frameworks, and contracting models to help other regions meet surging energy demand. We also cover the critical importance of rebuilding talent in energy infrastructure, Europe’s shift from decarbonization at any cost to balancing affordability and energy security, nuclear as a national security and grid resilience tool, the need for global collaboration to accelerate nuclear deployment, and the importance of advocacy, education, and encouraging nuclear adoption and awareness. It was a fascinating discussion and we want to sincerely thank Al Hammadi and Dr. Bilbao y León for joining us. Mike Bradley opened the show by noting that two weeks ago, markets were trading sideways in “anticipation” of Chairman Powell’s Jackson Hole speech and subsequently rallied to previous highs after Chairman Powell surprised markets with a modestly dovish tone. He observed that last week, markets were trading

This week we are delighted to welcome Betty Jiang, Managing Director of U.S. Integrateds and E&P Equity Research at Barclays. Betty joined Barclays in 2023 after leading the U.S. ESG Research team at Credit Suisse and has more than 15 years of equity research experience, with prior roles at UBS, Illuminate Capital Group, and Bank of America. We were thrilled to hear Betty’s insights on what’s top of mind for investors, key themes from earnings, and a preview of Barclays’ upcoming 39th Annual Energy-Power Conference, taking place next week from September 2-4 in New York. In our conversation, Betty shares why she finds energy research compelling and reflects on the interesting timing of her career, beginning in 2007 during the shale boom years. She explains how her experience in ESG and sustainability broadened her analytical skills and highlighted the complexity of the energy transition. We discuss the value of cross-sector research collaboration and Betty outlines key takeaways from Q2 earnings, including significant increases in free cash flow, shale resilience, a long-term bullish gas production outlook, and a market focus on efficiency and free cash flow discipline. We explore the intersection of gas and power demand and how factors like regional grid dynamics and AI are shaping the sector, the continuing need for baseload power, reluctance in adopting low-carbon gas, the importance of strategic positioning and capability for companies seeking exposure in power markets, and gas price and production outlook. Betty provides an insider perspective on how she navigates earnings season, noting how AI and research tools are increasingly shaping how research is consumed and analyzed, while emphasizing that AI cannot replace deep analysis essential for understanding nuance, context, and cross-company trends. We discuss the tension between short-term shareholder expectations and long-term strategic initiatives, emphasizing the importance of a clear “North Star” and consistent communication. Betty notes that energy sector investors vary widely, and while the E&P sector is generally out of favor with generalists, sustained capital discipline, cash returns, and demonstrated resilience are attracting renewed interest. We touch on the challenge of differentiation in energy companies and how thoughtful execution and innovative approaches can create competitive advantages, the key themes for Barclays’ upcoming conference with over 170 companies currently registered to attend, how efficiency gains and current free cash flow could influence 2026 outlooks, and more. It was a fantastic discussion and we greatly appreciate Betty for sharing her time and insights. To start the show, Mike Bradley noted that last week’s COBT theme was investor “anticipation” of the Jackson Hole meeting, while this week it’s investor “expectations” around NVIDIA’s Q2 results/forward guidance. On the broader equity front, the S&P 500 hit another high last week but traded sideways this week ahead of NVIDIA’s Q2 results. NVIDIA expectations are pretty bullish, with most expecting a beat-and-raise quarter, and the only real question at this point is whether NVIDIA’s forward outlook will be bullish enough to satisfy investors. At a $4.4 trillion market cap, larger than all but three countries’ GDP, NVIDIA’s AI commentary and forward guidance will be a market mover. On the crude oil market front, WTI price continues to trade sideways (low-mid $60s) amid continued 2H25 global oil surplus concerns that are being somewhat offset by lack of headway in Russian/Ukrainian peace (leading to possible stiff oil sanctions). On the natural gas front, U.S. natural gas price (prompt & 12mo strip) were trading at ~$2.70/MMBtu & ~$3.50/MMBtu (YTD lows). Investor sentiment is still more bullish for natural gas E&Ps, even though prompt natural gas price has significantly underperformed prompt WTI price this year. Mike also highlighted a

Yesterday we had the pleasure of hosting Dr. Michael Crow, President of Arizona State University. On Monday, we spent the day in Phoenix with Dr. Crow and his team, learning how ASU has been rethinking and reshaping the traditional university model to better reflect today’s fast-paced, high-tech world. The changes we saw are significant. Michael and his team are bringing innovation and disruption to a space long associated with tradition and stability. We loved the day and were delighted to have Dr. Crow join us for COBT.Before joining ASU as President in 2002, Dr. Crow served as Executive Vice Provost at Columbia University. His book Designing the New American University (2015) outlines the philosophical ideas he shared with us. At Veriten, we think of ourselves as an energy “knowledge platform,” so it was inspiring to talk with Dr. Crow about how to redesign the world’s “knowledge machines”— our universities. As you’ll hear in the discussion, ASU today is the nation’s largest university, with nearly 180,000 students enrolled across itheir in-person and virtual platforms.Our conversation covered a wide range of issues, opportunities, and new ideas shaping higher education. Since 2002, Dr. Crow and his team have worked to transform ASU’s culture and philosophical approach, putting student learning and advancement back at the center of everything. We discuss how technology adoption has played a role, how Arizona shaped the outcome, how ASU expanded beyond state borders, and how the university’s unique approach to funding has enabled growth. Most importantly, you’ll hear how ASU embraces a customer-centric, partnership-driven mindset that is pushing both direction and outcomes. Many institutions talk about changing the world—at ASU, they are attempting to do so at scale. Through new teaching technologies and methods, they are exporting their approach to other universities as well. In a time when elite institutions are often criticized for stagnation, Dr. Crow’s vision is a refreshing reminder of the art of the possible.Turning to markets: Mike Bradley began by noting that the 10-year bond yield (4.3%) remains in a very narrow trading range. Even with last week’s hotter-than-expected PPI report, markets still overwhelmingly expect the Fed to cut rates by 25 basis points at the September 17th FOMC meeting. He also highlighted that markets will be laser-focused on Chairman Powell’s Jackson Hole speech this Friday, a venue often used for key policy announcements on inflation and employment—so expect some volatility later this week and into next. On equities, Mike noted that the S&P 500 hit another all-time high last week but is pulling back this week on a modest (2–3%) decline in the Tech sector. NVIDIA and a few large retailers are the last S&P names left to report Q2 results; after that, markets will likely be more driven by global events than earnings. On crude oil, WTI continues to drift lower (~$62.50/bbl) amid hopes of a Russia–Ukraine peace deal. Finally, Mike highlighted the all-stock merger between Black Hills Corp and Northwestern Energy Group, creating a $15+ billion regulated electric and natural gas utility. We hope you find today’s discussion as insightful and engaging as we did. Our best to you all!

We were honored this week to welcome Senator Kay Bailey Hutchison and Jack Balagia for a Special Edition COBT. Senator Hutchison is a Founding Member of the KBH Energy Center at the University of Texas, with a distinguished career spanning both public and private sectors, from bank executive to U.S. Senator to most recently U.S. Ambassador to NATO. Jack served as Vice President and General Counsel of ExxonMobil for nearly two decades before joining the University of Texas School of Law faculty. He was appointed as Executive Director of the KBH Energy Center in 2024. We were thrilled to visit with Senator Hutchison and Jack about the KBH Energy Center’s upcoming Symposium in September and also hear their unique perspectives ahead of Friday’s significant meeting between President Trump and President Putin. This year’s KBH Energy Center Symposium will focus on the future of energy innovation, investment, and security (agenda details linked here). Taking place Friday, September 12 in Austin, the program will cover global energy outlooks, the growing role of nuclear and AI, energy’s ties to national security, data infrastructure demands, capital markets, and media coverage. In our conversation, we explore the geopolitical backdrop of the upcoming Trump-Putin meeting in Alaska, the hope for a Ukraine ceasefire, and the implications for future negotiations involving President Zelensky and the EU. We discuss shifts in President Trump’s stance on Putin since the start of his second term, as well as the Symposium’s keynote from ExxonMobil CEO Darren Woods, the event’s audience profile and impact, and other notable speakers including Goldman Sachs Vice Chairman Rob Kaplan and investor Jim Breyer. We touch on the uniqueness of the Energy Studies Minor Program at the University of Texas (details linked here), the Center’s collaboration with more than 30 energy-affiliated organizations on campus, NATO unity under Trump, changing European attitudes on defense burden-sharing with the U.S., and European relief at U.S. military action to deter Iran nuclear weapon capability. Senator Hutchison shares her perspective on how Putin may have overplayed his hand by not striking an early deal with Trump, the potential for stronger measures against Russia, prospects for negotiation, potential outcomes from the Alaska meeting, the symbolism of its location, and more. As you’ll hear, the Symposium is nearing capacity but there is still room to attend. Registration details can be found linked here. We are excited about this year’s gathering and greatly appreciate Senator Hutchison and Jack for joining us. To start the show, Mike Bradley noted that bond and equity markets were focused on the July PPI report, hoping it would match Tuesday’s in-line CPI print and reinforce expectations for an interest rate cut at the September 17th FOMC Meeting. Markets were looking for a PPI print of 0.2%, but instead it came in at 0.9%, the highest monthly reading since July 2022, which pushed the ten-year bond yield up by 5bps (~4.28%). This PPI increase was the first sign since tariffs were implemented that companies were passing through tariff increases and this large PPI print temporarily reduced the odds for a September interest rate cut (especially a 50bp cut) and also looks to have created a short-term headwind for equity markets. On the crude oil market front, WTI price has been drifting lower for the past two weeks, mostly due to global oil supply surplus concerns, which were reinforced this week by bearish 2026 oil macro r