RE:RE:RE:RE:RE:Strong GH ManagementThelongview wrote: Thanks Malx!
I believe the next 7 years for GH are going to be much better than their last 7 years. A lot of positives are lining up.
I think that Eric Nuttal has really nailed it with his oil outlook. Sustainable $70 - $90 wti looks very possible over the next 5 years and perhaps even much longer.
In the past the shale guys would go crazy on the drilling when oil was elevated. Boom and bust. Not sure this will happen this time around with their shareholders getting big variable quarterly dividends.
How do you see oil over the next 5 years?
Only setback to $90wti would be severe recession. My concerns with oil and natural gas are now that shortages will cause extreme inflation throughout the world and political risk with pressure from the ESG crowd. Inflation leads to higher interest rates that could pop this debt bubble created by covid spending and artificially low interest rates. Windfall taxes could be introduced if the public/govt gets upset enough with oil and gas co earnings. ESG could force dedicated E&P's to invest in speculative renewable power projects. Everyone wants to be the hero.
I've been bullish on oil for more than 2 decades now, so I'm the wrong guy to ask.
Don't worry about shale. They are out of money and most too leveraged. Service companies will be increasing their rates as well, short staffed and short of equipment.
OPEC+ has new leadership. They've learned to cooperate, set egos aside.
This is a new era for oil and natural gas. World has 8 billion people and counting.
Investors in oil today are like the investors in tobacco during the 90's. Contrarian.
I really believe Alberta is positioned to become the builder of economic activity in Canada over next 5-10 years. AB and SK about to recover strongly.