C.O.B. Tuesday

In this engaging conversation, Jason Kenney, former Alberta Premier and seasoned public servant, shares his insights as Canada approaches its federal election. He discusses key issues affecting the election, including declining popularity of Trudeau, economic concerns like weak GDP growth, and housing challenges. Kenney analyzes the rising importance of energy policies, particularly how they shape Canada's relationship with the U.S. He also debates the potential shifts in trade dynamics and the need for cooperative energy strategies moving forward.

Today we had the pleasure of hosting David Hambling for a sweeping discussion on drone technologies and their applications. David is a journalist, author, and defense technology expert with over 20 years of experience. He writes for Aviation Week, Forbes, The Economist, New Scientist, Popular Mechanics, WIRED, and more (for an archive of David’s writings, click here). David is the author of “Swarm Troopers” and has researched the history of drones and in particular, has zeroed in on the potential impact of smaller drones in both military and consumer applications. We were thrilled to visit with David. In our conversation, David shares his background in military technology and how his previous book, “Weapons Grade,” led him to explore the rise of drones. We discuss how the military lost its tech lead due to rapid commercial innovations, particularly as mobile phone technologies enabled the development of small, cheap, and highly capable drones. David explains the evolution of drone use, from reconnaissance tools to precision combat systems, and how this transformation has played out dramatically in the Russia-Ukraine war, where nearly two-thirds of Russian fatalities on Ukrainian soil are reportedly caused by small drones. We explore the shift from human-operated drones to autonomous systems, the difficulty of defending against small, agile drones, and the growing threat that they pose to critical energy and transportation infrastructure. David shares background on the historical cultural bias within militaries that sidelined drones in favor of piloted aircraft, until the CIA’s early adoption of drone strikes eventually forced the Air Force to adopt them, as well as the recent surprising Trump Administration decision to continue the Boeing F-47 contract. We cover the regulatory challenges facing drone adoption, particularly the limitations on beyond visual line of sight operations, public concerns around safety and privacy, and global developments including Dubai’s plans to pilot flying taxi drones by 2027. David outlines China’s dominance in the global drone market, applications of drones including infrastructure inspection, delivery services, reforestation, and the unique Ukrainian “Victory Drone” program that encourages civilians to help war efforts by building drones at home for frontline use. We also touch on China’s demographic challenges and how its shrinking and aging population is fueling the nation’s strategic investment in AI, robotics, and autonomy, the critical role of software in making humanoid robots useful, especially with using assistive tech for elderly care, and more. We end with David’s thoughts on what the drone and robotics landscape might look like in ten years. It was a fascinating and wide-ranging discussion that raised both the opportunities and the ethical complexities involved. Mike Bradley kicked off the show by noting that from a broader equity market standpoint, “Trumpatility” remains alive. Despite S&P volatility being cut in half over the last five trading days, it’s still higher than average and will likely stay elevated until we begin to see tariff deals signed. Equity markets feel much worse than reality, given that the S&P 500 is only down ~7% year to date. On the International equity front, Argentina received a $20 billion IMF package last Friday, which could be an extremely important development for the country’s long-term growth. On Monday, Argentina allowed its currency to freely float (between 1,000-1,400 pesos per dollar) for the first time in a very long time. In response, Argentinian 10yr bond yields plunged this week by ~150 basis points, and the Argentina equity market (Merval) and major Argentinian Energy equities have both rallied on the IMF deal. From an oil market standpoint, WTI looks to have temporarily stabilized in the low-$60s per barrel range. This week, the IEA slashed both its 2025 &am

We are excited to share this Special Edition COBT featuring Matt Loszak, CEO, and Jon Guidroz, Senior Vice President of Commercial and Strategy, from Aalo Atomics. Founded in 2022, Aalo is a pioneering nuclear energy company working to revolutionize the industry by manufacturing entire nuclear plants using prefabricated, factory-built components. Matt comes from a background in software startups, and his interest in nuclear began during his childhood in Toronto. Jon joined the company in September and is a seasoned leader in technology and sustainability, having previously held senior roles at Microsoft, Amazon Web Services, and Google Cloud. Last Monday, we had the opportunity to attend Aalo’s Factory Unveiling in Austin and see the technology up close. Mike Bradley, Brett Rampal and I were thrilled to host Matt and Jon. In our conversation, we explore the renewed interest in nuclear energy, driven by the growing need for reliable low impact low cost power. We discuss Aalo’s impressive growth (expanding from a small team of 5-10 to 45 people in under a year with plans to scale to 85-90 employees in the next 12 months), the company’s Factory Unveiling event showcasing their Aalo Pod, designed to power AI data centers, and their ambitious goal to deliver power at under 3 cents per kWh. Matt shares insights into Aalo’s focus to cross the “first-of-a-kind” barrier to “nth-of-a-kind” and what makes their “XMR” (Extra-Modular Reactor) design unique. We touch on the company’s culture, focused on urgency and achieving lofty goals, their success in drawing talent from organizations like SpaceX, Tesla, and the oil and gas industry, and the company’s plans to begin construction of a reactor at Idaho National Labs in 12 months. We cover the advantages and challenges of their sodium reactor design, the company’s successful Series A fundraise and goals for Series B, and collaboration opportunities with oil and gas. It was a fantastic discussion and we appreciate Matt and Jon for taking the time from their busy schedule to visit. We look forward to following Aalo’s progress and hope you enjoy the discussion as much as we did. Our best to you all!

Dr. Kostas Bakoyannis, former Mayor of Athens and current Chair of the Committee on the Environment, Climate Change and Energy, shares his extensive public service experience. He discusses Europe's energy future amidst geopolitical tensions, emphasizing the balance between energy security and transition. Kostas examines Greece's shift toward renewable energy, the importance of regional cooperation, and the challenges of tariffs and trade. He reflects on Greece's recovery and the need for adaptive governance during crises, showcasing the resilience and pragmatic policies shaping the region.

Michael Kao, a seasoned private investor and CEO of Akanthos Capital Management, shares his insights on the current economic landscape. He compares today's market complexities to navigating an asteroid field, evaluating the implications of Trump's policies and trade strategies. Kao also analyzes the resurgence in the energy sector, contrasting it with tech stock declines, and discusses long-term energy cycles. His unique perspective on market volatility and interconnected global events offers a fascinating glimpse into the investment world.

Dr. Paul Johnson, President of the Colorado School of Mines, and Jeff Miller, CEO of Halliburton, discuss the evolving landscape of energy education and workforce development. They emphasize the importance of industry-academia collaboration in shaping a sustainable future. Key topics include CSM’s experimental mine, the resurgence of mining for energy security, and initiatives to attract top talent. The conversation highlights how practical experiences in engineering are crucial for nurturing innovation, particularly in a climate of growing energy demands and technological advancements.

Dr. Scott Tinker, Chairman of Switch Energy Alliance and renowned energy expert, shares his insights on the complex interplay between energy development and economic growth. He emphasizes the need for pragmatic leadership in the oil and gas sector amidst shifting public opinions. The discussion highlights the stark energy disparities between wealthy and developing nations, where urgent human development often overshadows climate concerns. Dr. Tinker also unveils his new initiative, Energy Corps, aimed at empowering communities through sustainable energy solutions.

Chris Wright, the 17th Secretary of Energy, discusses the crucial intersection of energy policy, affordability, and sustainability. He highlights the expanding role of natural gas in the global landscape and the rising electricity costs. Wright delves into the regulatory barriers affecting energy infrastructure and the pivotal need for grid stability. AI’s potential in advancing both energy solutions and national security is also explored, emphasizing that pragmatic policymaking is essential for achieving energy independence and innovation in the sector.

Neil Mehta, Managing Director at Goldman Sachs, and Carly Davenport, Vice President of Equity Research, discuss current trends impacting the energy sector and utilities. Neil highlights a shift toward selective stock performance amid fluctuating commodity prices, emphasizing the need for capital efficiency. Carly delves into the rising power demand boosted by AI and data centers, exploring how utilities are adapting. They also address the critical role of management quality and the complexities of power pricing dynamics, offering valuable insights for investors.

In this captivating discussion, Dr. Dan Yergin, Vice Chairman of S&P Global and Pulitzer Prize-winning author, shares his profound insights into the evolving energy landscape. He delves into the delicate balance between energy security and economic growth amidst the global energy transition. Yergin also reflects on the influence of current U.S. policies and the stark contrasts between energy priorities in developed versus developing nations. Additionally, he previews key themes for the upcoming CERAWeek, emphasizing the geopolitical implications of today's energy challenges.