Inflation going to drive future Costs/Expense through the roof. TMX Expansion costs gone through the roof. I'm guessing the same going to happen with rest of the oil sector and market in general.
Looking into the future.... 5+ years from now.... as production begins to decline, the cost of future production going to be EXPENSIVE.... If oil prices don't go up futher, Profits not looking good.
Cash Flow/ Profits looking good now...... But you have to remember, cost/expense of current production is the "old cost", CapEx been cut to the bone, and had asset sales to help boost cash flow and profits. So while it looks GREAT for the sector now.... I'm not too sure about the future due to rapid inflation.
How much further can oil prices go and remain there? You know COSTS/EXPENSES are rocketing up and they are not going to come down any time soon.... So Oil Price NEEDS to do the same.
The Question is, will it?
All just my opinion/view/thinking/long term.......