Peeking at Peak-Oil..... Kasking's 9-innings of GHWon't be too many more quarters before the BNN crowd starts whispering their newest investment mantra: "Peak Oil"
Many mocked this concept, a very fashionable investment strategy to shun fossil fuels.
But trends and styles are changing with the times...............
Peak Oil is a moment in time when the world cannot produce any additional daily barrels of oil. Incremental Oil production is what stops the price of oil from going to $200/bbl.
Unfortunately, the media is incorrect in its seemingly endless bearish prognostications about oil.
The theory of Peak Oil is backed by math and physics, baked into the big cake of geology.
In a nutshell, as the world's aging giant oil fields experience annual decline rates of 5-8%, all while there are fewer and fewer new discoveries to replace those losses.
I became fascinated with this concept back around 2002-2003.
Was the beginning of a volatile journey into the world of fossil fuel investing and money management, supply & demand of what the world requires for its people to stay cool, to stay warm, to plant and harvest crops, to transport
4.8B amazon packages during 2022... (US deliveries)
Oil and Gas investing has been out of favour since the Americans ramped up their shale oil production starting around 2009-10. Not to be confused with the economic fallout after the Credit Crisis.
Because guess what seeds were planted from the recession following the Credit Crisis!
Yes, interest rate suppression after the world experienced major deflation during that recession.
When money is inexpensive to borrow, people start to play games with it. Often, silly games. (crypto) Very silly games.
The games started around 2010 in the form of Junk Bonds, issued at incredibly low coupon yields with the capital being used to fund US shale exploration and production.
And that was the beginning of a period in time when oil was ALWAYS abundant, taken for granted, mocked and scoffed at by "expert" money managers, economists, media, left-wing academia and its loyal participants.
Today there's varying reasons we all own Gamehost. Yes, I know management is top-notch, we've figured that out the past two decades. The other reason is Geographic footprint. The right province, the right economy, and maybe now we are about to see what happens when the timing is maybe just-right too.
If the world escapes deep recession 2024-2026, starting to look like it will, then demand for fossil fuels inevitably climbs. Affordable energy consumption is a key input to economic growth. The conversation about energy feels like it's about to shift away from "Too much oil" over to "
Not enough oil"
Some time in the next few years, sentiment will shift. Might be starting to happen right now. Lots of volatility, ups and downs, but general trend will be strengthening commodity prices.
Your Gamehost holdings will become more than just entertainment and lodging.
Kasking and I follow baseball a little, and some of the other shareholders here do too.
Let me tell you a little about the game going on right now during a period of economic growth:
Unfolding in front of our eyes.
Innings 1-3;
GH $6-10
Completed
Innings 4-6;
GH $10-14
Underway
Innings 7-9;
GH $14-18+
TBD
Not everyone stays until the very end, they like to escape the parking lot mid-7th and escape the crowds.
Hard to say what happens, but I'll stash a half-full bag of popcorn and maybe a beer or three.
The 'Hurry up and Wait' strategy is only 1/3 complete, innings 1 through 3.
To have an idea of what's on the horizon, we follow the FACTS not the news:
https://blog.gorozen.com/blog/is-us-oil-production-surging Have a read... let it sink in.
Not long ago I was worried about buying at $6...
Now I'm saving up some dividends to buy at $12 from
Kasking.