RE:RE:JP Morgan head of O&G sees start of supercycleI agree with you. I would like to point out also that the EV sector cannot scale up to many millions of EVs per year due to lack of battery minerals. There isn't enough supply of lithium hydroxide, cobalt or spherical graphite for making batteries. These are specialty chemicals and the capex needed to scale up the production is in the tens of millions of $USD. It's not being funded right now and when it gets funded, it will take many years to complete these projects.
rexrex wrote: EXCELLENT article, thank you for sharing, perspective is what is needed right now, $100 WTI seems logical given the sector is undergoing supply deficit ....
One thing i want to add is this....a black swan event is coming in the Electric Energy Sector, EV Sector is in a bubble right now, when this bubble busts, then oil will rise further and people will say, that to think the EV was the solution to everything was folly...EV is the future but it will take decades and decades....for now it is in the bubble territory...think of the dotcom bubble, it went bust, then it took over 15 years for that sector to gain relevance again...same will happen to the EV sector...so my take on the matter is, OIL is here to stay for another 20 to 25 years on Automobile usage and maybe another 100 or so years on airplanes and ships...