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Suncor Energy Inc T.SU

Alternate Symbol(s):  SU

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.


TSX:SU - Post by User

Comment by Experiencedon May 05, 2023 3:14pm
152 Views
Post# 35433641

RE:RE:RE:Yield = mispriced assets

RE:RE:RE:Yield = mispriced assetsJe vous remercie pour vos amiables paroles...

In your own answer, you demonstrate what the future is for oil use a least as far as transportation is concerned.  Even a hybrid as opposed to BEV will reduce oil consumption for all the trips that you make within your town.  

Most stats I have seen show that the average person typically drives 50km or less daily.  That can be replaced even with a Level 1 charger at home (ie plug your car into a regular plug in your garage) at night when rates are low for 12 hours.  If you live where the rates are also low during the weekend, you could pretty much charge up your BEV to 80% by plugging it in over the weekend.

At an average of 50km a day, there will be lots of power left even in the coldest weather. In this scenario, gas stations (ie PC stations) will lose all that business if people are"filling up" their cars at home.

For longer trips, yes that is still a major issue/deterent to buying a BEV. While the cold weather argument is valid for sure living in Quebec or anywhere in Canada save perhaps Vancouver and Victoria, in the US, over 200 million people don't have that problem.  There is another 300+ million people living in Southern Europe don't have that problem either.

For road trips, the IONIQ5 I have ordered can be refilled from 10-80% in 18 minutes with a Level 3 charger.  This is about the same amount if time it takes to take a pee break and stand in line at a Tims to grab a cup of coffee.

My contacts in the auto industry tell me that in about two to three years about 50% of all new cars sold will be BEV or Hybrid.  The big constraint right now in the industry is production capacity and that is being addressed (Hyundai will have a plant in the US putting out 300K BEVs a year by the first half of 2025).  They see within 5-6 years that in North America there will be essentially four car makers selling most of the cars - Tesla, a couple of Chinese makers (eg BYD) and Hyundai.  The rest will either be out of business or fringe players.  The truck side will take longer.

So if they are correct, then things are going to happen pretty quickly and savy investors should already being doing their homework to find alternative longer term investment targets.
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