In his latest annual chairman's letter to investors, BlackRock CEO Larry Fink discussed the changing nature of infrastructure investing, with countries and societies organizing around two fundamental trends: the energy transition and energy security.
Amid these structural changes to the way (and the where) in which energy is produced, many nations also are struggling with the highest debt burdens in their history.
Fink said a debt crisis for the United States is not inevitable, but that the answer is to focus on pro-growth policies, “which include,” he wrote, “tapping the capital markets to build one of the best catalysts for growth: infrastructure. Especially energy infrastructure.”
The confluence of the energy transition and a heightened focus on energy security has seen leaders increasingly discussing what Fink calls “energy pragmatism.” He and others see this as the pathway to decarbonization — one that requires continued use of oil and gas for