Does the energy stock upswing have legs for the long term?

Oil is expected to be 75 by q3, yes

What do you mean long term?


Is this upswing sustainable for multiple years? Probably not, but it's still a great value play. Do you think Berkshire Hathaway buys 48.5 million shares of CVX for short term gains?

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Yes, I meant for more than a year or two.

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Is the energy sector going to gain 6% per month for the next 1 or 2 years? I'm gonna go out on a limb here and say




And if I'm wrong, I'm retiring a lot sooner than I expected

We bought 0 barrels of Saudi oil in 2020. Given the current anti-oil, gas and coal policies emerging now, I don't think that is going to last.

The Saudis were going to increase output, but someone in the White House got the bright idea of stopping some of their promised military sales.

Yeah, with domestic production being threatened and the world's economies poised to come back strong, it looks to me that oil is going to reach previous highs.

Time will tell.

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Rather, I'm wondering whether people think that, generally, the trajectory will be upward.

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I think so, but the majority of ROI is likely going to be reinvested dividends. You can't look at energy stocks as a 1 or 2 year investment, that's how you get your arse handed to you. These are long-term holds, 5 years minimum, if not 10.

I only wish I had bought more Exxon and BP when it bottomed out. These companies are good another 75 years. We are not going full electric. It’s an eco pipe dream. Both have a great dividend too.

In a simple answer, yes. You’re seeing a return to prices before the pandemic. Some were so ready to put a nail in oil’s coffin last year, but I think the world tends to forget all that rubbing alcohol and plastic and hundreds of other products coming out of those barrels.

I put a lot of money into oil in October of last year. I’ve seen a 50% ROI in that time. I’m not taking it out of oil within the next three to five years.