Oil and Gas is the largest industry in the world. The world cannot switch to green energy overnight, it takes time. At the moment green energy about 15-20% contribution to the world energy, that includes electricity from dam. You still need O&G for petrochemicals, construction, machinery, etc. Otherwise we are back to Stone Age.
I've been in the O&G for the past 30 years & every year "experts" have been saying that it's a dying industry. O&G is a cyclic business, yes that's true. But not dying. Dont be fooled by the so called "experts". All the green & renewables will not be able to support global energy requirement for industries & daily life needs. Let's see if solar can be used to make all your daily life items that are fossil fuel based.
The majors might be realigning their focus to renewables to diversify, but the core business is still fossil fuel. Check out Petronas...more drilling activities are being planned for many fields in the coming years.
I've gone thru downturns in 1998, 2003, 2008, 2014 and now 2020 (due to Covid). It's cyclic, the industry has rebounded and it will rebound again. Covid will be gone one day....just like many pandemics before. Just enjoy the ride folks...
world growth engine i.e US,China,Europe,India, East Asia and Southeast Asia just warming up with the arrival of vaccine. Gradual business opening and market opening up. It is a huge opportunity for oil to rally further reach 70 - 80 USD or even more than that as many part of the world i.e Central Asia, Central America,middle east, The whole Latin America and the whole Africa continent still far from vaccination program as this will cause the demand to increase gradually.
Only USA, china and india consume majority of the oil, close to 50%, china and india consume more oil than pre pandemic time, although border remain close
USA just started ease restriction last week..oil demand will boom.
Oil price hike dose not mean Sapura sure up lah, beware of politic uncertainty and brazil car wash, if shahrill refuse to retire may also will cause the share price collapes.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
strattegist
23,459 posts
Posted by strattegist > 2021-02-23 18:18 |
Post removed.Why?