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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 Jan 01, 2024 11:41am
113 Views
Post# 35806060

RE:RE:RE:RE:RE:RE:RE:Interesting Graph Regarding Gasoline Consumption

RE:RE:RE:RE:RE:RE:RE:Interesting Graph Regarding Gasoline Consumptionnukster...valid points - great discussion!!

This is the crux of the problem and a key to decision-making - demand destruction vs supply destruction.  In terms of your points about existing known reservoirs and depletion rates vs demand, the reality is that world oil consumption has been relatively flat for the past 5 years or so (see the link below).

If Obscure is right about the "S" curve on EV adoption and you add in other things like reduction in the use of plastics and recycled things like plastics being used to make clothes etc then we may well see a reduction in world oil demand or flat with lots of known oil reserves still untapped in political jurisdictions that don't care about the environment. As Merimat pints out, in Canada, expansion and an increase in production for companies like SU depends a lot on favourable Government policies so from that perspective an investment in SU will depend on three things happening - a change in Government; the new Government actually meaningfully changing the investment climate; and SU increasing production.  All can certainly happen, but there is risk that it won't happen which is a risk over and above normal business risk.

I guess I'm not saying you are wrong, but as per my theme in past posts, from a pragmatic investment perspective these are risks and the question then becomes where can I get the best risk adjusted return.  My decision is that as a long term investment I can do better elsewhere and my long term investments are not in oil.  On a short term basis, I do agree that there will be lots of opportunities to make money investing in oil stocks from time to time.


https://www.statista.com/statistics/271823/global-crude-oil-demand/
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