RE:RE:Debt is Good! Sgy can make way more money with debt! I also wanted to add. I don't find it too risky. Oil companies are still not investing very much into production growth at all, demand continues to grow, opec is almost out of spare capacity. Oil companies are giving money back to shareholders rather then investing in substantial production.. so supply continues to draw down.
Let's say Oil companies changed their tune and decided to go full bore and increase production tomorrow. You are still looking at least 5 years to get the infrastructure built for big oil projects to increase production. And not only that... you have shortages on labour, materials to build, political hinderance and so forth so it will probably take even longer then 5 years.
Not to mention the noise coming out of Russia, the strikes on Saudi facilities, other geopolitical issues and such. EU banning oil, North america already doing so. Everything points to bullish oil. The bottomline is there is no oil and the world runs on oil. These are the fundamentals, the facts. The market has been playing catch up and is realizing this. Paul and his team see this and they are adjusting accordingly. It's very bullish oil. Leverage and debt is good. From the fundamentals... I don't see it as very risky. It's more risky to invest in tech stocks or keep your money in a bank account to let inflation eat it up.
Thanks,
Tanman