Investing

is now the time to invest in oil stocks?

  • Last Updated:
  • Sep 19th, 2017 4:05 pm
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Deal Addict
Nov 23, 2008
1911 posts
402 upvotes
Flowerp wrote:
Apr 13th, 2017 2:41 pm
Looking to go LONG with CPG.. any thoughts from oil-ies here ?Winking Face Thanks.
Motley fool canada has several articles on Crescent Point. Most of them favour CPG as they are relatively stable financially (one of the most financially stable in their peer group) and are investing more this year in anticipation.
Deal Addict
Nov 23, 2008
1911 posts
402 upvotes
jerryhung wrote:
Apr 14th, 2017 4:53 pm
Nobody is loving Energy right now, just like Early 2016 :( even with crude WTI at $53!!!
XOM/CVX/XLE are nowhere near their highs ...
that's perfect. buy when out of favour and be patient.
Oil is cyclical and will eventually go up. Can't be sure how long that will take though, but we have been in this oil rut for a few years already so it should be sooner than later.
Jr. Member
Oct 12, 2016
127 posts
16 upvotes
SomeOtherDude wrote:
Apr 14th, 2017 9:40 pm
that's perfect. buy when out of favour and be patient.
Oil is cyclical and will eventually go up. Can't be sure how long that will take though, but we have been in this oil rut for a few years already so it should be sooner than later.
Historically oil has always been cyclical but this time it is different as it faces severe headwinds from renewables which are only set to get better from now on due to the public and governmental support.
Deal Addict
Nov 23, 2008
1911 posts
402 upvotes
Limited7 wrote:
Apr 14th, 2017 10:00 pm
Historically oil has always been cyclical but this time it is different as it faces severe headwinds from renewables which are only set to get better from now on due to the public and governmental support.
Renewables have a LONG way to to go, but yea, I agree there are headwinds
Even when you take power generation off the table, oil is just way too ingrained in our society - from plastics, to natural gas heating, to cars & transportation, and a million byproducts that are even used in our foods, clothing, fertilizers, the list goes on and on.
Even cars & trucks - in the US and China there are millions upon millions of gas vehicles sold every year that will require gas for the next few decades. Electric vehicles are coming but also count for a miniscule fraction so far.
I'm most concerned about the abundance of cheaper fracking methods they've found in the US now - that changes the landscape because they can produce cheaper than the alberta oil sands - so not sure how much that will keep a lid on oil prices.
Jr. Member
User avatar
Jul 11, 2015
193 posts
92 upvotes
Victoria, BC
SomeOtherDude wrote:
Apr 17th, 2017 11:45 am
Renewables have a LONG way to to go, but yea, I agree there are headwinds
Even when you take power generation off the table, oil is just way too ingrained in our society - from plastics, to natural gas heating, to cars & transportation, and a million byproducts that are even used in our foods, clothing, fertilizers, the list goes on and on.
Even cars & trucks - in the US and China there are millions upon millions of gas vehicles sold every year that will require gas for the next few decades. Electric vehicles are coming but also count for a miniscule fraction so far.
I'm most concerned about the abundance of cheaper fracking methods they've found in the US now - that changes the landscape because they can produce cheaper than the alberta oil sands - so not sure how much that will keep a lid on oil prices.
It will be interesting if electric cars start to take off in the next 5 years. say 20% of the new vehicles being sold were electric. that's a pretty significant drop in gas use right there. and obviously there will be a tipping point where the entire industry standard changes to dominantly electric cars, when that point is, is up to government vs capitalism at this point. the benefits to the consumers are obvious. cheaper to run, less moving parts=minimal maintence. not to mention the likelihood that self driving cars will probably be a thing in the next 10 years. and an uber service will probably just own all the cars on the road, and we will more likely than not, personally own no cars. or if anything own cars for liesure use only and rely on a futuristic car service that undercuts the costs of the entire industry of owning a personal car. the approximately 50% of a barrel of oil that's used for gasoline is going to have a way lower demand in the free market, which is obviously going to drive the price of oil significantly down.

on the plus side all the other industries that use oil will be able to cut costs and allow other industries to function at a much lower cost. whether or not the price of oil eff3cts them significantly is probably fairly diverse, depending on industry and such. but i bet this will be beneficial for many industries.

but what about country economies who rely heavily on oil as there economic driving factors. for example, most middle eastern countries, Venezuela, Russia, Canada, and many many others. i feel like its in worlds governments best interest to keep oil alive as long as they can, for the fact that its going to be crushing to entire economies. it will be interesting to watch the future of oil really.
You're the average of the five people, you most associate with.
Jr. Member
User avatar
Jul 11, 2015
193 posts
92 upvotes
Victoria, BC
jerryhung wrote:
Apr 19th, 2017 1:57 pm
crude -3%

killing TSX with it
http://business.financialpost.com/news/ ... -burnt-out

I doubt this is the beginning of the end, I'm not suggesting i am an expert. but this article is a bit harsh isn't it?

America wont let oil disappear like that will they?
You're the average of the five people, you most associate with.
Deal Fanatic
User avatar
Jul 14, 2008
7531 posts
1152 upvotes
Ontario
jointedhornet wrote:
Apr 19th, 2017 2:26 pm
http://business.financialpost.com/news/ ... -burnt-out

I doubt this is the beginning of the end, I'm not suggesting i am an expert. but this article is a bit harsh isn't it?

America wont let oil disappear like that will they?
Here's an interesting counter article. Posted a couple months back but I don't think data has changed much since.

https://www.forbes.com/sites/rrapier/20 ... ae5cb06a94
Sr. Member
Aug 17, 2008
518 posts
148 upvotes
I wouldn't even think of buying CVE until we get down to the $12.75-13.00 area for reasons here. Even then, I doubt the recent bottom holds.
Jr. Member
Aug 16, 2015
105 posts
11 upvotes
Also getting killed on CVE. **** it, I'll just hold for a few years and hope for the best on this one I think.
Newbie
Dec 31, 2015
51 posts
11 upvotes
kilburn305 wrote:
Apr 19th, 2017 4:45 pm
Also getting killed on CVE. **** it, I'll just hold for a few years and hope for the best on this one I think.
This is exactly what I'm doing
Jr. Member
Aug 16, 2015
105 posts
11 upvotes
Opened a small position on teva too @ 32.... annnnnnnnnnnd, getting bent over on that one too.... solid picks.
Deal Expert
User avatar
Sep 19, 2004
19953 posts
2974 upvotes
Waterloo
Crude -4%, below $46
YTD 2017 low
almost 52w low

TSX Energy is ugly today, -3~-5% or more

Thoughts? OPEC cut continuation is almost guaranteed now, unless they want to see oil lower?

Damn, I'm too energy heavy, (well entire TSX is)
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