The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
http://www.bnnbloomberg.ca/video/we-ve-had-a-panic-induced-selloff-but-nothing-has-changed-in-energy-stocks-nuttall~2472295
Good short video from energy fund manager seems all oil companies are sticking to a similar structure reducing debt, returning free cash flow to stakeholders in a environment of steady demand growth and limited spare capacity
https://www.ninepoint.com/commentary/commentaries/2022/062022/eric-nuttall-june-2022-market-view/
Very informative short video from Ninepoint’s fund manager the big elephant in the room is long term strong demand for hydrocarbons potential to increase production capacity limited in the near term GKP has a trend of short term pull-ins into rang when a new high is printed building energy and a base for the next leg up !!
https://english.alaraby.co.uk/news/ninety-percent-issues-kurdistan-resolved-iraqi-pm
Now is the time to develop the fields and secure large scale investment from IOC’s developing financial and strategic relationships with the European market this window of opportunity must be exploited now GKP is likely to be a major part of that strategic planning the stock price momentum grind up will be the signal
https://www.zerohedge.com/markets/soaring-energy-shares-are-cheapest-2008
The investment funds are still underweight in the energy sector with massive oil and gas prompt supply demand pressure, also traditionally rising interest rate environments often means a rotation from growth non profit making stocks into value stocks which benefit from positive cash flow and a interest return on capital which offsets the cost of borrowing it’s no surprise the large players are increasing positions this could just be the start of the upside momentum
https://www.iraqoilreport.com/?p=44883
Court postponement
https://www.iraqoilreport.com/news/baghdad-launches-legal-action-against-kurdistans-oil-companies-44874/
Iraq, Kurdistan and the market knows new long term supply is essential to Support the European economy this level of pressure must be motivated by IOC’s circling
https://www.reuters.com/article/europe-oil-iraq-france-idUSS8N2WS00S
The route to the European market is obvious GKP potentially could soon get in play
https://www.reuters.com/business/energy/aramco-ceo-warns-global-oil-crunch-due-lack-investment-2022-05-23/
Realisation of the global need for oil and gas investment is building this could be just the start of the investment momentum in GKP
The urgency and political pressure being applied is likely being amplified by the need to develop replacement streamers of hydrocarbons to the European market the geopolitical location of Kurdistan and it’s pipe line connection to Turkey is an obvious target for future expansion the international community will be contingency planning for a total ban on Russian oil and gas in order to do this they need a long term solution GKP could be sitting on part of that solution
https://www.reuters.com/business/energy/aramco-ceo-warns-global-oil-crunch-due-lack-investment-2022-05-23/
Massive investment is needed to secure future energy security time to develop unexploited oil reserves rapidly
Why the sudden pressure and urgency to push for reviewing Kurdistan’s contracts ,what is the motivation they have been in place for years apart from the usual politics could we be on the verge of large investment pouring into the oil sector and the large players taking on expansion in this region there are no certainties only probabilities in business but the sand could be shifting in GKP’s favour
This is some of the most positive news out recently the location must be a strategic target area for energy security and long term regional influence the US must have this in mind and most importantly the IOC’s
https://www.reuters.com/business/energy/iraq-aims-hike-oil-output-6-mln-bpd-by-end-2027-minister-says-2022-05-16/
The environment of treating long term oils resources as potential stranded assets from an investment viewpoint is changing rapidly
https://www.al-monitor.com/originals/2022/05/russian-ambassador-iraq-no-objections-kurdistan-region-exporting-gas-europe
IOC’s must be thinking what we are thinking time for rapid field expansion and exploration Europe needs energy security - GKP route to market- largely underdeveloped hydrocarbons resource base under production sharing contact ripe for investment and development
https://www.reuters.com/business/energy/uk-kurdish-leaders-discuss-energy-exports-replace-russian-oil-gas-2022-04-19/
What conversations are taking place behind the curtains
The speed at which the supply dynamics are changing represents a seismic shift politically and economically GKP and it’s share holders are in a prime position to be a real beneficiary of any move to ramp up production by oil majors
https://www.wsj.com/articles/russia-oil-sanctions-europe-middlemen-fueled-putins-war-machine-now-theyre-getting-out-trafigura-11651166288
This is only the start of a new global oil dynamic with a need to supply Europe IOC’s will need fertile fields with opportunity to rapidly develop new supply to fill this gap
With the worlds energy supply dynamics changing the potential short term gain from trading a stock like GKP has a risk associated with that practice as long as the current fundamentals continue the momentum should be to the upside