Energy Stocks Will Continue To Do Well - BIR Mentionedhttps://seekingalpha.com/article/4541998-energy-stocks-will-continue-to-well In the absence of new supplies, the current shortage can only deepen, and the source of any new supplies comes down to United States and Canada, neither of which show any signs of expanding output. When German Chancellor Scholz asked Canada to expand LNG to supply Europe, Prime Minister Trudeau told him there was no business case to do so. Canadian failure to build pipelines or LNG terminals (beyond one under construction in Kitimat) leaves Canada incapable of providing Europe with LNG, and the Biden Administration continues to promote "clean energy" and withdraw oil from the SPR rather than encourage more domestic production. OPEC has little spare capacity and that source is dry.
Winter is now only three months away and demand for heating oil and natural gas is sure to rise. With natural gas in short supply, oil will be used as a substitute for power generation where that is possible and coal is making a comeback.
For investors, positions in oil & gas stocks should pay off. Debt-free companies with high free cash flow yields offer the lowest risk and likely highest rewards. Birchcliff (OTCPK:BIREF) expects to be debt free by year-end and has announced an intention to pay a CAD$0.80 dividend beginning in 2023. Spartan Delta (OTCPK:DALXF) is fast approaching a debt-free state and is expected to pay dividends once it reaches that goal. Peyto Exploration (OTCPK:PEYUF) has modest debt compared to cash flow and already pays a dividend of CAD$0.05 per month. Whitecap (OTCPK:SPGYF) pays a regular dividend and sports a strong balance sheet.