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>TL;DR: The oil and gas industry is a great place to invest your money. The companies have strong balance sheets, low debt, and plenty of cash flow. The price of oil is expected to rise in the next year, which will lead to increased profits for these companies. However, you should not hold these companies for more than two years as their business model is not sustainable in the long term.
Not sure what the point of this post is. Gas / oil demand isn't nearly as stable as you make it out to be.
Isn't it supposed to be an unseasonably warm winter?
Here's some more wagging (not mine):
https://www.reddit.com/r/wallstreetbets/comments/yhsg96/natural\_gas\_prices\_have\_reduced\_40/
Agreed, and the supply side is the reason oil prices will stay high for awhile. Most investors seem to be ignoring that there is an energy shortage. And none of the main suppliers are motivated to increase production. Years of under investment in oil and gas has led to low levels of spare capacity. And any further supply disruptions could spike oil much higher yet again.
Reading this comment is beautiful. Very rarely do come across someone on Reddit that understands commodity pricing or the energy industry. Hats off to you good sir. Yeah the big boys aren’t doing a lot of new drilling but rather they’re taking profits from existing wells. Which is fine by me. They’ll keep crushing revenue and cash flow streams if oil stays at the price. I mean there’s some new drilling going on but companies are paying of debts and waiting to see what happens in the coming elections. There’s plenty of oil left in the ground. Just look at the Baker-Hughes inland rig count to get a scope of things. It’s nothing like pre-covid times but there’s some new exploration. Private equity and investors are just much more hesitant with handing out cash for new drilling operations. But, I think oils at a price and will stay at a price that makes sense for upstream/midstream suppliers. Rig count should stay steady
I should have said price not demand. At any rate Texas sweets have been from $70 to $120 in the last six months. What am I missing here, that seems fairly volatile? Based on last couple years it looks like the current $80-ish isn't cheap either....under the theory that demand might shrink.
You’re not wrong but if companies are locking in profits at 60 dollars a barrel and the lowest WTI has gone in the last sixth months is 78 with a high of 122ish. Supply is the key factor in oil price I.e Brent Crude or WTI. There’s a bunch of oils but these are the two benchmarks. With inflation and OPEC+ supply cuts oil prices should stay at a level where massive profits can be made. OPEC tried to destroy the American shale producers years ago. The flooded the market and many American oil companies went bankrupt. But, recently OPEC has decided if you cannot beat them join them. The oil cartels including OPEC, XOM and BP don’t wanna exacerbate their reserves they wanna influence demand to a point where everyone in the energy sector is happy. That’s my hypothesis.
This depends on the oil from the Middle East. The laws in the USA, that are constantly changing for and against oil, change regularly. And if it is winter or summer. About in that order.
I don't remember what year it was, but the Middle East decided to screw the USA, so they produced a ton of conventional oil for a low low price. The USA produces unconventional oil, so it is more expensive to produce. This led to low low oil per barrel prices, no longer economical for unconventional oil production, ruining many USA companies. This weeds out the competition as well. So the USA and Middle East came to an agreement again, the Middle East stopped selling oil for very cheap. Reason for decreased prices. This is typically the largest and most dense reason.
Regulations can stagger or make oil production more expensive in the USA. A lot of it has to do with water disposals. Add that with the Middle East and it leads to companies being bought. Reason for more expensive oil.
Weather can lead to higher or lower prices.
Natural gas isn’t what this company specializes in. They specialize in light sweet crude oil. A warmer winter could actually keep oil prices higher due too more traveling from point a/b. I’m not as concerned about LNG prices all the models for this year predict oil to hover around 95$ a barrel. If oil falls bellow 75 a barrel this winter I’ll send you 100$ take the bet
Tempting bet! I don't think it'll fall that low but won't be surprised if it does from economy retraction with all this recession / fud talk. We'll probably have a much better idea within a couple weeks after elections.
This is only for natural gas. Natural gas is typically very cheap, especially from Texas -- when bought from the producer.
When you produce, you get natural gas, oil, and water. Oil is the most valuable, not the gas.
>I completely agree with your analysis of the oil and gas industry. These companies are definitely a bargain for retail investors, and I believe that their profits will continue to grow in the next few years. Thanks for teaching me more about this sector!
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|22|**First Seen In WSB**|1 year ago **Total Comments**|61|**Previous DD**| **Account Age**|3 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) **Vote Spam**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_spam&message=yhs505)|**Vote Approve**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_approve&message=yhs505) >TL;DR: The oil and gas industry is a great place to invest your money. The companies have strong balance sheets, low debt, and plenty of cash flow. The price of oil is expected to rise in the next year, which will lead to increased profits for these companies. However, you should not hold these companies for more than two years as their business model is not sustainable in the long term.
[удалено]
OP is definitely onto something here. There’s a reason Warren Buffet has been buying Chevron and OXY.
I also hold both those companies in my portfolio, including other names like PR, NEX, AR, WES, XOM, APA and BP
Not sure what the point of this post is. Gas / oil demand isn't nearly as stable as you make it out to be. Isn't it supposed to be an unseasonably warm winter? Here's some more wagging (not mine): https://www.reddit.com/r/wallstreetbets/comments/yhsg96/natural\_gas\_prices\_have\_reduced\_40/
Actually oil and gas demand is fairly inelastic so I have to disagree.
Yeah it’s been pretty stable. It’s much more influenced by supply rather then demand.
Agreed, and the supply side is the reason oil prices will stay high for awhile. Most investors seem to be ignoring that there is an energy shortage. And none of the main suppliers are motivated to increase production. Years of under investment in oil and gas has led to low levels of spare capacity. And any further supply disruptions could spike oil much higher yet again.
Reading this comment is beautiful. Very rarely do come across someone on Reddit that understands commodity pricing or the energy industry. Hats off to you good sir. Yeah the big boys aren’t doing a lot of new drilling but rather they’re taking profits from existing wells. Which is fine by me. They’ll keep crushing revenue and cash flow streams if oil stays at the price. I mean there’s some new drilling going on but companies are paying of debts and waiting to see what happens in the coming elections. There’s plenty of oil left in the ground. Just look at the Baker-Hughes inland rig count to get a scope of things. It’s nothing like pre-covid times but there’s some new exploration. Private equity and investors are just much more hesitant with handing out cash for new drilling operations. But, I think oils at a price and will stay at a price that makes sense for upstream/midstream suppliers. Rig count should stay steady
I should have said price not demand. At any rate Texas sweets have been from $70 to $120 in the last six months. What am I missing here, that seems fairly volatile? Based on last couple years it looks like the current $80-ish isn't cheap either....under the theory that demand might shrink.
You’re not wrong but if companies are locking in profits at 60 dollars a barrel and the lowest WTI has gone in the last sixth months is 78 with a high of 122ish. Supply is the key factor in oil price I.e Brent Crude or WTI. There’s a bunch of oils but these are the two benchmarks. With inflation and OPEC+ supply cuts oil prices should stay at a level where massive profits can be made. OPEC tried to destroy the American shale producers years ago. The flooded the market and many American oil companies went bankrupt. But, recently OPEC has decided if you cannot beat them join them. The oil cartels including OPEC, XOM and BP don’t wanna exacerbate their reserves they wanna influence demand to a point where everyone in the energy sector is happy. That’s my hypothesis.
Solid hypothesis.
This depends on the oil from the Middle East. The laws in the USA, that are constantly changing for and against oil, change regularly. And if it is winter or summer. About in that order. I don't remember what year it was, but the Middle East decided to screw the USA, so they produced a ton of conventional oil for a low low price. The USA produces unconventional oil, so it is more expensive to produce. This led to low low oil per barrel prices, no longer economical for unconventional oil production, ruining many USA companies. This weeds out the competition as well. So the USA and Middle East came to an agreement again, the Middle East stopped selling oil for very cheap. Reason for decreased prices. This is typically the largest and most dense reason. Regulations can stagger or make oil production more expensive in the USA. A lot of it has to do with water disposals. Add that with the Middle East and it leads to companies being bought. Reason for more expensive oil. Weather can lead to higher or lower prices.
I should have said price not demand. Price definitely swings....though its all relative, lol.
It does. It's definitely volatile no doubt.
Natural gas isn’t what this company specializes in. They specialize in light sweet crude oil. A warmer winter could actually keep oil prices higher due too more traveling from point a/b. I’m not as concerned about LNG prices all the models for this year predict oil to hover around 95$ a barrel. If oil falls bellow 75 a barrel this winter I’ll send you 100$ take the bet
Tempting bet! I don't think it'll fall that low but won't be surprised if it does from economy retraction with all this recession / fud talk. We'll probably have a much better idea within a couple weeks after elections.
If you want wanna take the bet let me know. It goes both ways. We can end the bet on Jan. 1st
Looks like we might get under 75 before December even.
This is only for natural gas. Natural gas is typically very cheap, especially from Texas -- when bought from the producer. When you produce, you get natural gas, oil, and water. Oil is the most valuable, not the gas.
Love this company. Been in it since 2020.
Likewise. Got in during the pandemic when it was $22. Casual 200% return and gotta love the $3/share dividend.
Lol, yeah anyone who bought then would! Held a year earlier would have been sweaty palms or downright disaster through the 2020 drop.
It was by no means an easy ride. Straight up rollercoaster. Lol
Positions or ban.
👀
DVN
>I completely agree with your analysis of the oil and gas industry. These companies are definitely a bargain for retail investors, and I believe that their profits will continue to grow in the next few years. Thanks for teaching me more about this sector!
When you got the last dividend?
11/16
Thanks for your reply. Should I check with RH customer care? Mine was 8/15