Episode 60: Why Is Energy Sentiment So Negative?

Episode 60: Why Is Energy Sentiment So Negative?
SL Advisors Talks Energy

 
 
00:00 / 00:05:23
 
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In this week’s podcast, Simon Lack discusses popular views on energy

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2 replies
  1. Gordon
    Gordon says:

    Without a doubt, the climate catastrophists/green new-dealers have been winning the PR war. Regarding oil/gas companies, most people simply (and ignorantly) figure “why should I invest in something that will be obsolete in 20 years?”

    It appears that buybacks will have to be the primary impetus for stocks returning to higher, more appropriate prices.

    Reply
  2. ELLIOT MILLER
    ELLIOT MILLER says:

    So-called analysts, and financial journalists and fund managers generally fail to distinguish between crude oil and natural gas and lump them together as “energy”. Crude oil and natural gas have vastly different uses and futures. Just take a look at the industrial and other end uses for natural gas, NGLs, LPG, LNG etc. in the petrochemical analysis in the newly issued investor presentation of EPD. Look at the growth in LPG and NGL exports. Look at the replacement by gas of coal in power generation. Look at the increases in gas exports to Mexico. Similarly the analysts, financial journalists and money managers who disdain “energy” don’t distinguish between upstream and midstream operations. In short, energy sentiment is negative because those expressing the sentiment are deficient in their analysis. That makes bargains available. I’m willing to bet that the individuals quoted in your podcast have no idea that in 2021 EPD will have $1 billion on gross margin from petrochemicals or even what the end uses of NGLs are.

    Reply

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