Vermilion Energy Inc. T.VET

Alternate Symbol(s): VET

Energy Oil & Gas E&P

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The Company’s operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. The Company operates through seven geographical segments: Canada, the United States, France, Netherlands, Germany, Ireland, and Australia. In Canada, the Company is a key player in the highly productive Mannville condensate-rich gas play. It holds a 100% working interest in the Wandoo field, offshore Australia.

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Vermilion Energy Inc. > WE ARE SO STUPID....

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Comment by sclardaon Nov 07, 2021 8:58pm

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Post# 34098189

RE:RE:RE:RE:RE:WE ARE SO STUPID....

quesea wrote:
Alberta exports about $60 Billion (oil price about $75/brl) a year to the USA.

When everything becomes Electric Alberta will sell about $0 a year.

So Darn rights it's going to change the Economy !!
Perhaps we can sell Hydrogen but the Technical's are extremely difficult. ie: Hydrogen is a liquid at -270 C & extremely explosive and pressurized

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"When everything becomes Electric Alberta will sell about $0 a year.

Forecasts for crude oil consumption estimate that crude demand will peak around 2030. After that it is expected that oil usage will not increase but slowly decline over the next decade.

So for the next 20 years or so we will likely have the current level or more of petroleum demand.While many people forecast the complete destruction of demand for petroleum which will not happen ever they seem to forget about the production side of the equation.

From the way things seem to be heading the last few years have created a perfect storm of sorts for oil. Except for the last several months oil prices over . the last 6 or 7 years have been in the $50 range which lead to oil companies not making much profit and reducing capex budgets. Then along came Covid and completely collapsed oil prices leading to huge capex cuts in oil exploration and production budgets.

Much of the worlds current oil production comes from places like Saudi Arabia and others where the oil fields have been producing for many decades. In twenty years from now many much of that production will be declining sharply as those fields will eventually run out of oil. Most of the worlds cheap and easy to produce oil is being and has been used up.

We also have Oil companies being looked down at and hated by the green movement and people in general depite those same people using huge amounts of petroleum in their everday lives not only for fuel for transportation but every type of product you can think of that uses plastics, chemicals etc which is pretty well every product we use in the modern world.

Dont get me wrong i am all for green energy and saving the planet. The fact is it will take a lot of time to change everything and even if that happens which is not a sure thing oil demand will be with us in large quantities as long as humanity exists in its modern form.

At the same time while oil demand isnt going away and production is currently limited for many reasons it does not mean that oil prices will just keep climbing. History has made a fool of many who have tried to predict where oil prices will go in the future.

As oil prices climb shale and other higher cost producers will start to come back online and increase production. Many oil producers such as VET will start to increase capex to expand production to take advantage of high oil prices. Higher fuel prices will also result in people using less fuel or finding alternatives which is not a bad thing.

We also have huge government money printing and debt around the world. Add to that super low interest rates that have caused a huge bubble in a lot of the real estate and stock markets around the world. Inflation is starting to get out of control and higher interest rates will eventually be needed to control inflation which will likely cause the real estate and stock market bubbles to collapse which could lead to a large recession if not depression which would lead to much lower oil prices.

Its a cycle which has happened over and over in the past. This time government money printing and debt and deficits are larger than ever before. Personal debt is a lot higher than ever before, interest rates are lower than ever before and inflation is starting to reflect these facts.

I hope i am wrong but i cant see this all ending well as all the signs are there for those who choose to read them. That is the longer term concern. For now as oil prices keep climbing and VET shares keep rising we are all making money and thats what we are here for.

Alarm bells will start going off for me when i hear everyone piling into oil stocks and calling for $200 barrel forever which is currently starting to happen.

That is the time to sell and then wait for the next almost inevitable oil price crash to come.

Good luck to all.