Suncor Energy Inc T.SU

Alternate Symbol(s): SU

Energy Oil & Gas Integrated

Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations). The Company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. The Company also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region.

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Suncor Energy Inc > Capitulation in Oil Stocks

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Comment by firstworldon Jul 06, 2022 12:15pm

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Post# 34805310

RE:RE:RE:Capitulation in Oil Stocks

7.5B people of the new world order will benefit from RU oil and gas at 40-60% discount to Nazi market prices LOL.

So far everyone told every Nazi supporter to blow - they have all been abusied by thiose folks for last 200 years....will not lift a finger. Only Candians would spend more to produce moe to earn less profit with govt stepping in with communist support vis welfare payment LOL.

Obscure1 wrote: As I have mentioned in the past, China and India to a lesser extent will be the big winner in all of this.

I don't know one can trust the news reports, but it appears that China has been filling up their reserves with Russian oil that has been discounted by $30 per barrel. If that is true, China should be buying oil for under $70 per barrel. Meanwhile, Biden is begging OPEC to produce more oil which according to the news is not possible as they are already producing everything that they can.

So, what does this all mean?

China's huge competitive advantage is increasing faster than ever. America is selling to Europe for a quick profit but its own citizens are paying a high price for Biden's (re: his left wing puppet masters) irrational policies. European prosperity is imploding. Russia is laughing at the west now, but their infrastructure is going to crumble with the end result being that it becomes a feeder nation for China, much like Canada is a feeder nation for the USA and more recently China.

As Experienced has pointed out many times, in economics, variances eventually regress to the mean. In simple terms, that means that things will return to the basics, which in this case is the marginal cost of producing oil. How long will that take is anyone's guess but in the meantime, the collapse in the investment side of oil exploration is likely reshaping the "norm" when it comes to cost for pretty much all suppliers other than the Middle East.

The crazy part of the marginal cost of oil for the Middle East is that they actually produce oil for about $10 per barrel, but their economic policies require oil to be at about $80. Meanwhile, Russia's cost is about $20. Canada's cost (or at least SU's cost) is approaching $25 per barrel.

So, what does regression to the mean actually mean when it comes to the price of oil?

Damned if I know.

What I think I know is that the sanctions against Russia have not made life better for anyone other than for OPEC nations and China and India. As usual, the politicians have made a complete mess of things.