02-05-2020, 01:33 PM
(02-05-2020, 12:45 PM)fenders53 Wrote:(02-05-2020, 11:36 AM)DividendGarden Wrote:(02-05-2020, 10:51 AM)fenders53 Wrote: XOM and CVX are making cool powerpoint slides pretending they are into renewables going forward.
Haha!
I'm no doubt ticking members off that are crossing their fingers and riding these stocks down. I would truly love to hear a forward looking bull thesis because all I read (elsewhere) sounds like 20 years ago. I'm very open to other views. IMO they are just very short trades until they get a meaningful plan.
The world uses 100 million barrels crude oil EVERY SINGLE DAY. There is surplus production, primarily thanks to US production growth from shale plays, that has resulted in depressed prices. I have doubts that this growth will continue into the future.
All the hysteria about electric cars and renewable energy doesn't change the fact that worldwide demand for fossil fuels continues to grow every year, and likely will for the foreseeable future.
Market sentiment is as bad as it's ever been on the industry, but the fact remains that unless there are huge technological advances in battery/electric power storage, EV's and renewable energy aren't going to take over the world. They are too inefficient, intermittent, and expensive with current technologies to fully replace fossil fuels.
That is why I continue to own CVX, XOM, and other energy companies.
https://media4.manhattan-institute.org/s...319-MM.pdf
https://economics21.org/inconvenient-rea...gy-economy
https://oilprice.com/Energy/Energy-Gener...tated.html