Given the continual narratives being presented in the mainstream media regarding the adoption of electric vehicles displacing fossil fuel consumption, I thought it appropriate to focus back on the "Basics" of investing in the energy sector.
If you own shares of Gamehost or any other business located in Alberta, you are in fact largely an energy investor. Like it or not, Alberta's economy depends on fossil fuel production.
How long will Alberta's fossil fuel reserves continue?
Given the fact Alberta ranks number 4 globally in oil reserves, one can safely assume decades of future production as opposed to years.
https://www.alberta.ca/oil-sands-facts-and-statistics.aspx#:~:text=Reserves%20and%20production,bbl%2Fd)%20in%202017. While Alberta supply looks bright, how about global demand for internal combustion (I.C.E) vehicles? Will electric vehicles (EV's) displace oil consumed by (ICE)?
Luckily, we as energy investors are selling a product consumed globally. While demand may wane slightly in the west (U.S., Canada, and Europe), the rest of the developing world (4 / 5 billion people) will consume all that we are willing to export.
Take a look at the number of vehicles (both I.C.E and E.V.) that will be in the global fleet over the next 20 plus years. The number of (I.C.E) vehicles alone is staggering, regardless of the number of (EV's). The number of (I.C.E) vehicles alone is expected to grow until 2038, that is in addition to the growth rate of (EV's).
I hope the chart below comes through properly:
Now consider the decline rates of existing fossil fuel production, combined with the lack of upstream capex the last five years, and we have a great deal of opportunity ahead of us as energy investors.
Stay focused on the big picture, push back against false narratives surrounding the end of fossil fuels, prepare your family and friends for the chaos and opportunity that awaits all of us in the future.
Cheers,
Nukester