Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.
One of the best authors on US and Canadian oil companies i follow states it best in one of his articles "Value is still in the doghouse" : "You have really had just a long bear market exception for the "one decision" type stocks. The indexes may have hit new highs but its really only a few stocks participating. Until there is that final give up sell off, this is likely to continue." Stop looking for logic, there isn't any.
Vicki Hollub from OXY predicts oil supply shortage by 2025 : https://oilprice.com/Latest-Energy-News/World-News/Buffett-Backed-Occidental-CEO-Says-Oil-Shortage-by-2025.html
Not only we and other UK-listed oilers as HBR, ITH, GKP, GENL , CNE, TLW seem to have the problem of incredible valuation compression : did you have a look at valuation of telco's (BT, Vodafone)? Not nice long time charts. Oil service providers (Petrofac has billions in orders and is trading at MC less than £ 150M)....
Breaking my head why we keep sinking with Brent over $75/bl, but that doesn't make me wiser....
“For the sector to trade at a higher multiple, the investors need to view oil as moving back into an era of scarcity”...
https://www.bloomberg.com/news/articles/2024-02-04/big-oil-s-optimism-faces-reality-check-in-tech-obsessed-market?srnd=premium-europe
or : https://finance.yahoo.com/news/big-oil-optimism-faces-reality-140000065.html
Especially when there is oil in the ground. https://www.bloomberg.com/news/articles/2024-02-04/biden-officials-headed-to-guyana-amid-dispute-over-oil-wealth
is incredible....we are not the only ones reaching multiyearlows while some of the megatechs keep making all-time-highs. if you were able to buy facebook-shares on the dip november 2022, you have *****upled your capital in one and a halve years. if you are in the energy sector -e&p's especially- you are not far from multiyearlows. not only enq. so many us and canadian e&p's. the same in gold. gold still over $ 2000/oz, yet the biggest gold miner newmont (nem) has lost 60% in value since april 2022 and is trading near 5 year low.
Perhaps algos picked up or someone got sweaty after this old news in today's Guardian : https://www.theguardian.com/business/2024/feb/02/tory-donors-oil-and-gas-company-given-north-sea-licence-after-150000-fine
Https://www.bloomberg.com/graphics/2024-uk-wind-farms-overstate-output/?srnd=premium-europe
Expect to keep hearing an awful lot less about ESG and DEI — and an awful lot more about cost-cutting, sales growth and profit margins. https://www.bloomberg.com/opinion/articles/2024-01-29/personal-wealth-esg-and-dei-were-always-luxury-goods?srnd=premium-europe
Https://seekingalpha.com/article/4665055-q1-starts-with-a-bang-as-oil-inventories-draw
And another Houthi bang this evening : https://www.bloomberg.com/news/articles/2024-01-26/merchant-ship-reportedly-suffers-fire-after-being-hit-near-yemen
Https://www.bloomberg.com/news/articles/2024-01-23/edf-s-uk-hinkley-nuclear-costs-balloon-as-plant-delayed-again
Perhaps not a bad idea to pay attention to what Norway does : https://www.reuters.com/business/energy/norway-gas-output-hits-record-oil-beats-forecast-2024-01-23/