- Recovery in Oil and Gas prices and stocks looks sustainable. Stocks still represent a good investment opportunity in our opinion. Energy stocks benefit from limited investment in oil and gas production and development.
- Concerns over global warming and greenhouse gas emissions limit capital flows to the oil and gas industry.
- This lack of capital has reduced the amount of new development and production. US drilling activity down thus lowering supply.
- Demand for oil has recovered to 2019 levels and is poised to grow at 3% for the next several years.
- Increased demand has eaten into OPEC’s excess capacity cushion.
- Lower supplies of oil result in higher price. US supplies unusual lack of response to higher price means prices will stay higher longer.
Stocks we like:
Company Name | Ticker | Price | Dividend Yield |
Civitas Resources | CIVI | $52.89 | 3.55% |
Petróleo Brasileiro – Petrobras | PBR | $13.42 | 15.21% |
Ovinitiv | OVV | $40.52 | 1.39% |
Suncor Energy | SU | $28.89 | 4.58% |
Antero Midstream Corporation | AM | $10.14 | 8.77% |