RE: Multi Year Bull Market25 Jun 2022 21:41
When I started this post in October 2021 Oil price was $39 a barrel. Now Oil price is $114 a barrel an gas price has rocketed.
There was no Russia Ukraine war an this was already an energy crisis in the making with many of my beliefs now coming to fruition. One being OPEC running out of spare capacity, another being shale investors not wanting growth, but dividend returns. Lack of labour an shortages of equipment are causing problems even if they wanted to drill. The Majors have of course been intimidated by Greta an her believers, an yet still we see her on the stage at Glastonbury today preaching to those who are ignorant to what is playing out here, whilst opening up their increased energy bills, which will only go much higher.
Leaders who got policies very wrong have to understand that we are short in refineries yet they expect companies to use their windfall profits to increase refining capacity an at the same time telling them we need to accelerate transition to renewables, but they will not be needed in 5 years time - it is madness.
Biden has no options an is desperate with this energy crisis. My belief is Boris, Biden & Trudeau won’t be around soon an new leaders have to understand that energy is key to digging our selves out of this fiscal hole.
Oil price can easily rise another $40s 'now' due to the lack spare capacity, inventories drawing to their lowest ever whilst SPR has not helped either. This is a structural story with under investment re ESG concerns that has caused this problem. I see no demand destruction either an discounts on energy bills only act as a stimulus for demand.
Jeff Curry Goldman Sachs this week said we are only 18 months in to 10 year super spike period where oil will continue to rise. This is very true an $200 Oil is looking conservative now.
Germany is one step away from rationing gas as Russia cuts supply. Putin is 'the' winner here and the West really need to step up to the mark fast. Of course it is clear to me now that West Newton, Biscathorpe an shale gas in the North are all of national significance, remembering of course that Union Jack Oil do not frack.
There is still a misconception with fund mangers having oil in their portfolios as the belief is that we will not need fossil fuels for much longer. This will become very clear soon as the free cash flow that quality energy companies like Union Jack Oil will be returning to share holders an dividends will catch their attention an grow the share price. Oil will be around for decades to come. Italy, Portugal, Slovakia, Bulgaria and Romania have today joined Germany wanting to delay a European Union plan to effectively ban the sale of new petrol and diesel cars from 2035 by five years.
Union Jack Oil has plenty of news to come this year an is in the best position it has ever been in this multi year bull market for oil.
I stand by my prediction of £1 for Union Jack Oil an $150 oil this year.
Heid Oil.
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