Oil Stocks: Henry Groppe, Groppe, Long & Littell and Dean Orrico, Middlefield Capital Corporation
On Report on Business Television, oil outlook and oil stocks were talked about by:
Henry Groppe, principal, Groppe, Long & Littell,
Dean Orrico, managing director, Middlefield Capital Corporation
Groppe Oil Comments:
essentially, for many years, it was only Saudi Arabia..only country with spare capacity..last few years very proactive assessing supply-demand balance..with decline of oil demand 2002, Saudis actually adjusted production 6-7 times that year..
I’ve never been this bullish on oil..this is totally new era..very very firm support for oil and gas..problem is being able to get enough done..crude oil alone is about $2 trillion a year business..crude oil recently passed food services as biggest in the world..
good buying opportunity for oil stocks..currently it would take a major recession to bring oil price back down to low $30s..like a worldwide pandemic
we never run out of oil..but 35 years ago we ran out of $2 oil, 25 years ago we ran out of $15 oil, now we ran out of $35-40 oil..what I think we will be seeing will be more efficient usage..I’m not in the $100/barrel camp..every 100,000 barrel disruption = $1 in oil price
early stages of oil supercycle..remaining 10 year run..$50-60 oil with all conditions normal..
Oil Stocks:
ADVANTAGE ENERGY INC (NYSE:AAV TSE:AVN.UN): wouldn’t be a name I’d include in our portfolio right now..high payout ratio + debt..
PROGRESS ENERGY (NYSE:PGN TSE:PGX.UN): we still hold it..good quality management team..one of top ten names
CATHEDRAL ENERGY SERVICES (TSE:CET.UN): low payout ratio, little debt..can withstand volatility
PENN WEST ENERGY (NYSE:PWE TSE:PWT): great long-term holding..may see in short term cut in distribution..
TOP PICK: VERMILION ENERGY TRUST (TSE:VET.UN): 60% offshore..well positioned from downside position..
TOP PICK: ARC ENERGY TRUST (TSE:AET.UN): had this close to ten years..2-3 years of drilling inventory..not had to go back to acquisition market
TOP PICK: CRESCENT POINT ENERGY (TSE:CPG.UN): smaller trust, beaten up..real upside on acquiring Mission Oil & Gas
Henry Groppe, principal, Groppe, Long & Littell,
Dean Orrico, managing director, Middlefield Capital Corporation
Groppe Oil Comments:
essentially, for many years, it was only Saudi Arabia..only country with spare capacity..last few years very proactive assessing supply-demand balance..with decline of oil demand 2002, Saudis actually adjusted production 6-7 times that year..
I’ve never been this bullish on oil..this is totally new era..very very firm support for oil and gas..problem is being able to get enough done..crude oil alone is about $2 trillion a year business..crude oil recently passed food services as biggest in the world..
good buying opportunity for oil stocks..currently it would take a major recession to bring oil price back down to low $30s..like a worldwide pandemic
we never run out of oil..but 35 years ago we ran out of $2 oil, 25 years ago we ran out of $15 oil, now we ran out of $35-40 oil..what I think we will be seeing will be more efficient usage..I’m not in the $100/barrel camp..every 100,000 barrel disruption = $1 in oil price
early stages of oil supercycle..remaining 10 year run..$50-60 oil with all conditions normal..
Oil Stocks:
ADVANTAGE ENERGY INC (NYSE:AAV TSE:AVN.UN): wouldn’t be a name I’d include in our portfolio right now..high payout ratio + debt..
PROGRESS ENERGY (NYSE:PGN TSE:PGX.UN): we still hold it..good quality management team..one of top ten names
CATHEDRAL ENERGY SERVICES (TSE:CET.UN): low payout ratio, little debt..can withstand volatility
PENN WEST ENERGY (NYSE:PWE TSE:PWT): great long-term holding..may see in short term cut in distribution..
TOP PICK: VERMILION ENERGY TRUST (TSE:VET.UN): 60% offshore..well positioned from downside position..
TOP PICK: ARC ENERGY TRUST (TSE:AET.UN): had this close to ten years..2-3 years of drilling inventory..not had to go back to acquisition market
TOP PICK: CRESCENT POINT ENERGY (TSE:CPG.UN): smaller trust, beaten up..real upside on acquiring Mission Oil & Gas
posted by Spelunca at 9:59 PM
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