The 2008 recession scarred homebuilders unlike anything the industry experienced before. Because of that, homebuilders have been building homes at a slower pace today despite a growing number of people demanding homes and constant talk about housing shortages.

We are seeing something similar happen with energy companies. Since the severe commodities downcycle that started around the time of Brexit and ended with the pandemic recovery, energy companies have been reluctant to boost their capex spending. More energy companies would rather pay more in dividends and share buybacks than invest in new wells.

With the Russian invasion of Ukraine, the world is relying more on the Middle East for oil. American oil producers could expand their oil drilling but, because the federal government has made energy executives frustrated for many years, energy companies would rather stick to the wells that they have and not bother with expanding oil production. It wouldn't matter if one party gains majority rule or not.

Investments in green energy were suppose to be a great way of reducing our dependence on fossil fuels. Unfortunately, with all the money we pour into green energy, green energy tech today isn't as great at producing energy as compared to fossil fuels. Nuclear energy is great but historical events have scarred policymakers from becoming pro-nuclear energy. We need to boost investment in green energy R&D because we need to focus on finding more reliable and efficient sources of energy production instead of sticking to the current solutions that we have and double down on them.

With the West seeing increased energy demand from manufacturers reshoring their factories, cars going electric, and AI applications being power hungry, it wouldn't surprise me if Western leaders start buying energy from nations that it once sanctioned, like Russia, Iran, and Venezuela. Those nations will cash in on the insatiable demand for energy. The Middle East can expand production but after they've been sanctioned by the Biden Administration on their advanced semiconductor purchases, I doubt they would want to lower energy prices for the West ever again.

The world will have to deal with an energy crisis for a period of time before breakthroughs like nuclear fission become reality. For now, companies will have to worry about managing their energy costs.