RE:RE:RE:RE:RE:RE:carbon taxExperienced wrote: Merimat - a couple of things
I didn't say anything about SU investing in solar or wind.
Your comment means that if you are in the camp that believes the future returns from investing in an oil producer will better than anywhere else. My view is the opposite. So, as I said in my previous post, SU is a one trick pony and so if things don't go well for future oil prices (ie they not only continue to get high prices but even future increases greater than the rate of inflation), then your money would be better off elsewhere. So you better be right in your belief or you may lose a lot of money over the next 10-20 years staying invested in an oil producer as a long term core position.
Your comment is also a bit like saying, starting in the 1970s with the development of the digital switch that producers of analogy switching devices should keep producing them and people should stay invested in such companies. Well we all know that if you invested in such companies you would have gone broke unless they decided to change their business model. Not saying that something that dramatic will happen to oil producers but as the world moves to a less oil-based economy this will be a drag on future gains in the SP of oil producers - companies that are producing things for markets that are growing will do much better...plain and simple. It is Economics 101.
As a case in point, the private company I have invested in already has a cap value of 15X what I bought it for and they expect to have another much larger financing in about 1-2 years at twice the current cap value. SU could talk to them. The amount of money they are seeking is peanuts for a company like SU. There are lots of other companies out there doing the same. All SU would need to do is to have a talk with the Government agency that is evaluating grant applications from companies like that and get the list...and talk to them.....not rocket science!!
Then what would you have SU invest in? Perhaps buy out a NG company to add a gas play...its an idea. Possibley buy into a company thats investing in emmision reductions? Maybe.
Oil companies should stick to there bread and butter. If I wanted to invest in something to do with the transition I would not be looking at a heavy oil play.
This is a 3-5 year time period