Stock Opinion

Just Exxon now

Thanks Saint. Good advice! I’ll hang on too it. I knew when I bought last month it was for the long haul!

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Demand for oil/gas is only going to go up in the future and the world is still largely dependent on it for the foreseeable future (20-100 years).

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You're making this up, only thing driving the paltry 1% or so of demand growth is petrochemicals which should flatten in 10-15 years

I probably have a contrarian view on this on a Louisiana message board, but I will never invest in an oil and gas stock again. I will no doubt invest in derivative companies, like utilities, but nothing that is primarily an oil and gas company. I learned very early as a young financial analyst to stay away from industries with shrinking market opportunities. Even if the companies are otherwise producing great cash flow, once that Wall Street apparatus packs up and moves on to “what’s next,” those industries whose markets embody melting icebergs struggle to catch a bid. The ones that still generate substantial cash flows are better suited to private equity, where the value proposition is more quantitative and not as much of a popularity contest. Like it or not, the environmentalists are winning. More than half the world think the planet will never be the same in 12 years due to CO2 emissions. Funds with ESG mandates (which are becoming more and more common) are dropping fossil fuel-based companies from their investable universes like they are the second coming of the Black Plague. Why invest here, especially now, when there are other sectors that aren’t in secular decline (however slow)?

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You're making this up, only thing driving the paltry 1% or so of demand growth is petrochemicals which should flatten in 10-15 years

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Not going to pretend I’m an expert, but this is just my opinion from working in the industry and seeing what projects are being picked up around the world.

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No offense, but those in the oil and gas industry in places like Houston are highly susceptible to missing the forest for the trees. In much of the developed world, supporting anything fossil fuel-related is as cool as cancer. That’s definitely not my view, but it’s one that has become shockingly widespread throughout places like Australia, Western Europe, East and West Coast America and, yes, even little enclaves like Austin and New Orleans.

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No offense taken. I’m not going to act like I’m an expert on global economics. I’m just a lowly engineer.

However, people’s opinions can be what they are and still be almost wholly dependent on oil and gas. Electric cars are produced in factories that run on oil. Almost all of the electricity we use comes from plants that burn coal, oil, or natural gas. Plastics are a derivative from petrochemical processes.

I do hope renewables becomes a viable source of energy. I just recognize that we have a relatively long way to go before they become our primary source.

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Do you still have my email address?

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I’m unsure.
Please email bayoubengals1988@gmail.com and I’ll tell you what it’s about.

Feel free to shoot me down if you don’t have the time.

You’re an FA now?

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There is no current replacement for the thousands of products that come from oil. Prices will pick back up as they always have and oil will still be here

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We literally have more than we know what to do with. Even if it got back to $30 and stayed there, is that enough?