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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 nukesteron Mar 02, 2024 5:28pm
153 Views
Post# 35911485

RE:$4,500

RE:$4,500 Obscure,

Interesting video. 

While I see the point you are trying to make, you are taking your argument to extremes IMO. The automotive market is vast and contains numerous levels of quality and price points.  The BYD or other cheap chinese brands will certainly effect certain market segments, but will not upset the entire automotive market in some giant catastrope.

The Ford F-150 crowd are not going to purchase BYD F150's, 

Geographic / Environmental / Infrastructure issues will cause most purchasers to keep ice vehicles in the garage for decades to come.

I am not saying you are wrong, just you are over estimating the effect of a cheap alternative.  I could see a family buying a cheap chinese BYD for local driving and an ICE for longer trips, or winter driving.  Equally a great many people will choose an ICE car ONLY as it is more reliable in extreme weather, or where charging infrastructure is limited.

Look at the debate between Harbor Freight Tools and Snap-On tools.  Harbor Freight Tools are cheap but useful, Snap On Tools are super expensive and typically a much better tool for those that need the quality.

My point is Harbor Freight's cheap chinese imports effected Snap-On, but did not put it out of business as near as I can tell.  Ask your local mechanic, does he use Snap On or Harbor freight???    Most likely the answer will be  BOTH :-)

I may buy a cheap EV for my kid to drive around town in good weather, if it is truly cheaper than ICE, but I will still have the need for a dependable ICE for long trips, rough weather, etc.

The smartest thing Ford or Chevy could do is get out of the EV business and sell higher quality reliable ICE vehicles that have a dependable , profitable market that will exist for decades to come.  Nobody can predict what a corrupt government might legislate, but a auto manufacturer can predict consumer demand fairly well.

There is another aspect of your argument that I disagree with, you continually reference North America oil demand being decimated by cheap EV's.   Again, your argument has some validity, but is being taken to an extreme.  Oil demand is GLOBAL and increasing.

Countries like India, Indonesia, etc. are expanding rapidly and lack infrastucture that would allow a rapid roll out of EV's.

Above all else, your comments ignore the concept of oil reservoir depletion.  Oil reservoirs will deplete faster than oil demand will decrease.  That is not just my opinion, that fact has been included in numerous reports over the last few years.

In conclusion, you are not entirely wrong about cheap chinese EV's effecting the North American auto market , but you are exaggerating the actual effect and ignoring the opportunity to invest in various oil producers that are currently under valued, and will producing profits for decades to come IMO.

Suncor is not the only investment in the universe, but it is certainly an excellent choice for deep value investors that properly consider oil consumption, demand, and reservoir  depletion over the next ten years approx.

Cheers,
Nukester

 



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