MigraineCall wrote: Actually, the more Gretas there are out there, the better it is for the energy industry. It has caused other folks of similar motivation to squeeze the fossil fuel energy pendulum so far, it has created this fantastic once in a lifetime opportunity for anyone to get in now on the ground floor before the consequences of a lack of supply of oil and fossil fuels hit us like a tsunami.
The climate action plan has evolved, and came up with a solution. We still are still calling it a 'renewable energy transition', thinking we will do away with fossil fuels forever, yet most don't realize that it may really only be a 'renewable energy addition', merely adding to our current energy production not replacing it.
A massive underinvestment in global oil projects and exploration for the last many years ensures we won't even be able to maintain our production at current levels. At the same time, barring another black swan event, global demand for energy will only increase with time as the billions of others in the rest of the world reach further ahead into the middle class. Unable to afford Teslas, but each consuming more things, moving around more, heating, together they will use more and more energy. The current push to renewables will help to fill that gap, but take much longer than anticipated. Consequently, consumption of fossil fuels will be at least more or as near as it is today with strong demand for a long time.
Energy shortages are only now becoming more commonplace, while scarcity and higher costs are leaving many without. Supply chain shortages are becoming persistent. Skyrocketing prices for commodoties have raised the costs of goods. Stay tuned this winter, as headlines scroll about more tragic human consequences of this man made energy crises all over the world, with whole cities freezing, and only then perhaps, the true gravity of our errors and our energy predicament will start to unfold.
On the bright side, to prosper with our future global energy crisis, one should be well positioned with a bundle of energy stocks, particularly those like Suncor. It is large, and well positioned as a free cash monster with its extensive infrastructure and reserves already in place. For in a land where new energy projects and pipelines now have a snowball's chance in hell of coming to light, it is already producing to fill our demand.
Being somewhat diversified is good, as some energy companies will perform better than others as this plays out. Remember, management does their best to guess the right moves and lead companies with the facts at hand. We on these boards are the second derivative of that, and without their insight, we are merely passengers on the plane, second guessing the guessers as to what we think should be done with our thoughts about buybacks, debt repayments, capital expenditures, dividends, etc. In reality, it is just merely a place to vent, and is inconsequential. For me, as a long term investor in this environment, there is less stress involved when sitting back for the ride, trusting the pilot, and letting them do their jobs they are paid well to do.
As in flying, it doesn't matter what seat you are on, first class or economy, back or front, we all still arrive at the destination. The important thing is to have a seat on the plane.
Thats all, now back to the movie...
Oldnagger wrote: I really do not get all this talk about orphaned Oil Assets. No respectable organisation such as the EIA is talking about the end of petroleum. They are talking about the leveling off in demand in 15 to 20 years time. Renewables are very costly once the necessary storage and distribution costs are added in. Furthermore they are very capital intensive, with long lead times and low rates of return which are hardly conducive to implementation.
If anyone thinks that governments will do the job, think again .
There is also the not too small issue that outside Canada and Europe, everyone is much more concerned about securing supplies of a commodity they desperately need !!