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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 Nov 15, 2023 9:44am
115 Views
Post# 35736553

RE:Next move when you are stuck between a rock and a hard place

RE:Next move when you are stuck between a rock and a hard placeObscure.....good post - what you are talking about is what I have talked about many times.  That is the direction arrow.  Successful investing involves chosing/finding companies with a positive upward sloping direction arrow.

But just for the sake of argument let's say that the whole world as an OMG moment and decides that EVs are not the way of the future and politicians to a 180 on related legislation and policy.

In this Alice in Wonderland scenario, what factors would be drivers for a substantial increase in the SP of SU?

1....significant increase in oil production

2....the price of oil skyrockets above the marginal cost of production and stays at that elevated level

3....the cost of production of oil plummets

4....SU uses its FCF to get into new a highly profitable growth industries

If you believe these things will happen AND the future market penetration of EVs will stall despite the efforts of the cuurent class of world politicians then stick with SU. If you think that this combination of factors is unrealistic then you should consider somewhere else to put your investment dollars.
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