RE:A Perspective on Oilyou are way off base and i have learned..the long drawn out posts are ALWAYS shorts or put buyers..
https://www.suncor.com/en-ca/what-we-do/low-carbon-power https://www.suncor.com/en-ca/who-we-are/technology-and-innovation/renewable-technologies Experienced wrote: Right now oil prices are high and producers like SU are making record profits, paying down debt and rewarding shareholders with dividends.
This situation may well hold baring the recession I am predicting and will likely last for a few more years.
But what does the future hold after that?
In the transportation sector we see a rapid growth in the use of EVs thus reducing demand for oil and oil products and greater demand for electricity. The reality is that oil will not play a role in the production of this future increase in electricity demand.... it doesn't right now and will be even less so in the future.
This reality is why, in part, the SP of companies like SU doesn't match its financial metrics. The other reason is the one that I talked about extensively a while back. That SU needs to show the market that it has a plan to morph into a company whose future doesn't rely on oil production or at least it has developed other significant businesses to generate shareholder wealth. IMO we have seen very little in terms of announcements in this regard.
Conversely, companies producing natural gas will have a future in this changing world since natural gas will continue play a significant role in future electricity production and perhaps an even greater role when it becomes more evident that renewables like wind and solar have limitations in the reliability of the grid.
With this as background I would encourage people to think more about buying gas producers on market weaknesses than oil producers and also look at electricity producers the same way.
If you are skilled in options trading like Migraine then you could make a lot of money playing the swings that will happen during this transition. Otherwise, IMO you will look over shoulder and wish you had put your money elsewhere. Not to say SU is a bad investment but there are better avenues to make money as the world changes.