Ancient_Implement_30 t1_iuhnv0y wrote on October 31, 2022 at 12:31 PM

Reply to comment by InterestingHurry1834 in Why aren't people buying energy stocks? by InterestingHurry1834

If you look specifically at oil. Oil correlation with oil stocks. Oil has pulled back from $110 to the $80s. While oil stocks have gone higher.

So the stocks are high with great quarterly earnings. But these will slow 20-30% in Q1. But oil companies are projecting more growth. Which will fail.

chomponthebit t1_iuhzvgm wrote on October 31, 2022 at 2:09 PM

Oil stocks aren’t moving with oil because 1. Biden gave oil subsidies to everyone in the short term via Strategic Reserve (remember, elections coming up, and cheap energy helps); 2. Biden’s gonna have to refill the SR buy buying from oil companies in the medium- to long term; 3. The drive for ESG and general hate-on for fossil fuels means no funding which leads to no exploration which leads to supply issues which leads to parabolic energy prices which leads to oil companies mooning in the mid- to long term, and 4. why would oil companies waste finances on exploration when the West is dead-set on green energy and trying to put them out of business? Thus, demand will FAR outstrip supply. This is inevitable.

O&G is a 5-10 year investment: automate your dividend reinvestment and let supply and demand issues play out

Ancient_Implement_30 t1_iuihwlh wrote on October 31, 2022 at 4:14 PM

Wow.. why the fuck are you talking about. Oil reserves? Anyone who thinks this matters at ALL is a moron. They do not look at the numbers.

Headline! “Biden to release 15M barrels of oil from reserves”

Fact US oil consumption per day 19.7M.

Oil reserves being released is a political move that does nothing to true supply and demand.

I am not even going to get into ESG.. There is plenty of facts out there to disprove your thesis. Just baffled by your logic.

Grand_Inquisitor_Nel t1_iujiam5 wrote on October 31, 2022 at 8:16 PM

In the end, it’s not about what makes sense but rather who to bet your investments against by what you believe makes sense. This is the way.