RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Chevron buys Hessnukester wrote: Experienced,
Your logic is sound, but you are being short sighted in my opinion.
You are correct in your assessment of the political environment in Canada supressing investment, but the purchases being discussed show the actual global market value of the underlying commodity.
Your view essentially posits that the government of Canada can endlessly suppress the value of one the worlds largest deposits of hydrocarbons. While I agree Trudeau and company can damage the industry short term, longer term global realities will govern Canadian oil reserves.
Similar to the effects of gravity, the oil will flow to the nearest dollar when it is needed most.
To put it another way, imagine trying to hold an inflated beach ball under water, that is essentially what Trudeau and company are attempting to do by damaging investment in Canadian oil and gas.
Eventually the beach ball will pop to the surface, reality will eventually catch up to Trudaeu.
Canada needs endless revenue to continue the planned welfare state. Eventually oil and gas exports will be the only option to prevent a complete collapse of the Candian government.
It is only a matter of time in my opinion, as energy investors the wind is finally at our back, relax and enjoy the ride.
Cheers,
Nukester
your criticism on E is too kind. Canadian energy valuation were always less than US counterpart, even before trudeau era. That's why big US energy names have had stake in canadian energy arena (Shell, Exxon, total, chevron, devon, marathon, conocophillips, gulf, etc). To compare canadian energy valuation, let alone oilsand specific, to US energy valuation is unfair and not comparable, that's why Matt2018 got trampled from both anti SU and pro SU crowds. Strong hand US and foreign operators finally exited canadat after JT came into gov't.