RE:Stock priceTD Securities released this report today, which I found very interesting, since it compares relative value amongst Canadian, US and International o&g (primarily the large integrateds)
Its definitely interesting that that while the US o&g producers are the least ESG friendly, they are award the highest multiples by the market, while some international energy companies like BP and RDS that have really gone out of their way with the ESG stuff, trade the cheapest....Canada is somewhere in the middle. Therefore, I'm highly sceptical of how useful "greening" the o&g sector will be.
Tommy123 wrote: Here's a good article from today about how Canadian oil companies need to become green to see any share price increases from here. Oil prices won't really play a factor.
Current cash flows alone likely won’t be enough to win investors back. Gold miners learned this when the price of bullion soared above US$2,000 an ounce last year, yet many producers’ share prices remained far below their peaks.
To help combat investors’ growing aversion to fossil fuel producers, the largest oil sands producers have started making concrete commitments toward achieving net-zero carbon emissions.
https://www.theglobeandmail.com/business/article-canadas-oil-sands-producers-are-awash-in-cash-flow-again-but-esg/