oil precious

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Hi all

as non-oil vehicles come into market ..eg. Tesla electric cars

do you think ppl will be made to pay extra to continue to use gas

and oil like suncor energy will become a precious resource

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Asked on September 23, 2020 7:19 pm
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thankyou

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Posted by Ayesha Ahmad
Answered on September 24, 2020 5:31 am
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Unfortunately, the price of oil is governed by the few (OPEC) and at this point, I don't see this changing in the near future. What we do know is that demand has cratered due to COVID 19 and there is a clear shift to EV. This however, won't be done overnight and oil isn't going anywhere over the mid-term.

I can see lower CAPEX and drilling as producers try and shore up the supply and demand imbalance - however, this will take some time. There are reports that peak oil was 2019 - this means that peak oil demand was in 2019 and the world will never reach that level of demand again. I could see this, but I can also see oil rebounding in a big way once COVID-19 subsides, a vaccine is in place and folks start to travel again.

In the meantime, considerable uncertainty remains which is why we are avoiding the space.

Mat

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Posted by Mathieu Litalien
Answered on September 24, 2020 4:29 am