RE:RE:RE:RE:RE:More lost businessApologies on my math, in Canada it's 92% higher than last year. My calculator sometimes decides not to acknowledge when buttons get pushed.
Demand for O&G had a dip due to covid in 2020 and is bouncing back. Years of low investment in drilling due to low commodity prices will dry up supply (just like it always does) and then things will get scarce, prices go up and it spurs another frenzy of drilling so that producers even out their supply chain. It's been doing this since the first oil boom/bust cycles decades ago. Change the name of the commodity to copper, uranium, zinc, etc. and the same story plays out with boom/bust and exploration phases. Who do you think does better financially, the people buying at the bottoms when no one else has the commitment or orbs to take the risk, OR the people cautiously buying while things are peaking because they think it's going to continue forever? There are dozens of great books on contrarian investing strategies and there are TCW shareholders who bought during scary times when it was below $0.50/share last spring who are sitting on a fat +400% return today. It doesn't matter precisely how many rigs are running in Canada, it's the trajectory of investor sentiment. Last time I checked 400% in 13 months is epic. Stressful, but epic.