RE:Ninepoint Market View Thank you Under the radar !
His view point is almost spot on in my opinion. However , I think he doest touch enough on drillers , and the trust factor. All of his words , view point come to fruition if the drillers don't begin raising production. I think if what I read and what we all read is because of lack of investment we are truly in a spot where it would take time to replace a short fall and if covid delta variant is beaten back or contained , as well as global macro economics recovering or continuing to recover in places like China, and the United States we will be under supplied . Shale is quick , and resilient , and I think the general investor needs to see more than 1 Q of discipline . Trust will take longer , it will take less with dividends that can't be ignored !!
I actually think we might be okay here , that the majority of drillers will keep production in a 3 to 5 percent growth trajectory , while improving balance sheets . Eric suggests within the next quarter there balance sheets will be fortress like ! Well , I think this is a bit over optimistic, well, he is not wrong as far as I am concerned as LONG as the price of oil , gas , and the cost of borrowing stay in the range where we are in today. I love Eric's message especially when we have a few bad days I will actually go find a article like this ..... read it and feel less crazy ! . He is the expert , but I also think there is not enough mention of India and there economy becoming middle class or more modernized ? I still remember China in the beginning of what is now close to becoming the world # 1 economy if it's not already. I remember incredibly well , as I am in the transport industry and how China , it's demand growth kept western Canada insulated from the Global bank crisis brought on by the mortgage scandal in the United States ( Greed ) ! All the residual business such as trucking , manufacturing, that went along with the demand in western Canada. It saved my industry .
I know India does get mentioned , and renewables will be a larger part of there energy needs being met as there middle class grows , but this is a massive population that is going to require massive amounts of energy , and this is in my opinion one of the reasons oil demand has not peaked .
I really appreciate the articles , and well my 2 cents might not be enjoyed , or I may Seem to be on heavy Sedatives I take the time to write my opinions because I am passionate about investing , business , and most of all I love reading other opinions.
So thanks to posted like Under the radar and the others you know who you are !!
Peace !