The numbers are clear and cash flow funding dictates that next drilling will happen in 6 months. Meanwhile disaffected holders look to exit. It isn't quite a rush to the exit, but it's not far from it. It was to be expected no matter what the result of the recent drilling. It is an altogether disappointing prognosis for the share price despite the positive outlook for the company.
Meanwhile COP26 and the climate catastrophists will blather about the supposed ills of fossil fuels in general and CO2 in particular, ignoring the fact that there is no viable alternative to fossil fuels for global baseload energy supply into the foreseeable future. The real agenda there is all about transferring wealth from the developed west to developing countries.
As Badger pointed out the task of replacing fossil fuels as the source of baseload capacity is huge and the scale of it is wholly misunderstood by the public and media at large. One nuclear power station every week for 50 years will not achieve that objective even if it were possible. Renewables simply won't cut it. That is even before you take account of the huge mass of raw materials, and the environmental impact of mining and manufacturing them all, that would be required to produce the mass of batteries, solar panels and wind turbines that would be needed even if they could do the job, which they cannot. The scale is immense. If you do the numbers it just doesn't/won't work. Then there is the huge environmental impact of actually deploying them and then disposing of them when they wear out in twenty years and need to be replaced.
Increasing energy and fuel prices in the USA will cause a major political revolt, and that will begin soon. The mid terms in 2022 will be instructive. The oil price is going to stay strong into the foreseeable future courtesy of constrained supply from the USA courtesy of Mr Biden and the Democrats. Being long lots of oil in the ground will pay off eventually.
What I shake my head about is how there is a disconnect between understanding that electric vehicles etc. run on electricity that has to be generated by something. The source of that electricity generation is an issue now and will become a bigger issue. Much demonised coal, oil and gas are far and away the most cost efficient source of baseload energy despite what the Greenies and Climate Catastrophists say. It will not be long before inflation and other woes profoundly affect the standard of living in the west. It is happening already. The seeds of social disruption are there already.
BYE Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
