Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum Frontera Energy Corp T.FEC

Alternate Symbol(s):  FECCF

Frontera Energy Corporation is a Canada-based oil and gas company. The Company is involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 27 exploration and production blocks in... see more

TSX:FEC - Post Discussion

View:
Post by Kelvin on Mar 18, 2023 6:43am

Frank

The analogy to the physical sciences, in particular, thermodynamics, doesn't escape me.
 
Systems undergoing processes transforming them from one state to another that happen rapidly or abruptly create more entropy (disorder) than those processes that undergo the same change in state that happen in an orderly, manner with small incremental steps.
 
It's called the "quasiequilibrium" process or "reversible" process. 
 
Equilibrium is defined as the system's properties will not change if no net external influence is imposed. It is stable. Like a tank full of propane. 
 
You can convert it's chemical energy into heat energy by incrementally flowing the propane through a burner in a boiler with far less disorder created than by converting the chemical energy into heat energy all at once by the tank blowing up.
 
The idea is that if a system is initially stable and you impose a change on it then the change has to be such that the system always remains stable. 
 
Powell raised rates too quickly. The financial system became unstable. Some banks blew up. Like oversteering a car causing it to start spinning. So now I think Powell will slow right down and gradually correct for the rate increases.
 
But there's still that nagging question of inflation. My guess is that they'll now shift to other means to control it. Like reducing hydrocarbon prices. OPEC+ can do that by boosting supply. It'll be interesting to see what comes out of the next OPEC+ meeting. But they have to be careful not to make abrupt changes there either lest they cause disorder in the orderly E&P of oil and gas. 
 
So, at the micro company level, as long as global year on year demand is still growing, we will see well managed companies do well even at lower oil prices because their production volume will see steady increases. 
 
So now, I'm a lot less concerned about fec, cgx, bte etc because as long as Powell settles down and OPEC+ acts rationally, then we'll start to see the sp move up again.
Comment by rogueecon on Mar 22, 2023 3:49am
Yes Kelvin your quasi-equilibrium analogy makes a lot of sense. I'm wondering if the fears of an implosion in the banking system caused hedgefund lemmings to panic enmass and dump oil related holdings; either out of fear or due to the demands of margin clerks. Sometimes when there is a fire the baby gets tossed with the bathwater as humans usually make bad decisions during times of crisis.