JohnFriesen wrote: unc12345 wrote: I guess I should have been more specific, but my request to "point out my errors" was in reference to ol griz who seemed to say to me that I should proofread first?
Ol griz, where was my error?
I don't get too involved in the back and forth here, just interested in the odd insightful comment I might read that gives me hope for SGY.
My apologies. I put ol griz on ignore long ago, so didn't see that.
As for Surge, the recent oil prices have put an end to the speculation that it is in financial difficulty, and that is why the debentures have been rallying hard. I wouldn't be surprised to see them ttrade back close to par before long.
But we have to be realistic as far as the common share price goes. We all know it is stupidly cheap based on fundamentals, but the "climate change" political correctness continues to gain traction, boosted by the Biden win in the US. So "the market" remains hesitant to pour everything back into the sector. The recent rise in share prices of many oil stocks is evidence of some money coming back, but I have doubts we will ever see the old boom days, unless the supply destruction is enough to balance the demand destruction from Covid.
As for the potential for permanent Covid effects, I think there will be some. I think this has put a lasting fear in the minds of some people about travelling close to other people, such as planes and cruise ships, at least for the medium term. As the years pass, people will start to forget, and travel demand should return. But by then, "renewable" energy will continue to grow and eat into the demand for oil. As much as I think electric cars are not the answer, I am not stubborn enough to deny that a lot of people will be buyig them. That will cut into oil demand, but probably increase the demand for natural gas to produce the electricity to charge the stupid things.
Looking further down the road, world reserves for oil will continue to fall. If Surge could survive for 10 years and find enough oil to keep their RLI up, it could be worth a lot of money. But, then again, I might not be around in 10 years! Haha
Have a good weekend