Max, I am bullish on the oil price mid term. Automotive (cars) only make up 21% of world oil consumption and it is going to take at least a decade to capture the bulk of this market by the EV market. Peak world oil consumption is still many years out. The worlds population growth from 8 Billion to 10 Billion over the next 20 years cannot be under estimated. All these people consume energy and most of the growth will be in the lower economies. Plastics, bitumen, shipping, industrial, domestic power production, air transport ++ will continue to see net oil consumption growth for some years to come. Note EV cars are predominantly made of oil based products.
The massive pull back in US shale production (worlds number one producer) during Covid and US Government regulatory changes along with a severe reduction in exploration world wide over the past 2 years should see the supply demand equation contract. This is all subject to a number of things of course namely the world getting back to some form of normality after covid and world economies holding up under the new enormous debt burden.
Big if's but the world is energy thirsty and oil will remain the number one energy source for many years to come. I see a mid term oil price run up to $100/ barrel. This could/should provide a nice window for the ATS management to negotiate a drilling partner or an outright sale. I will post a series of interesting graphs and information to support my conclusions when I get time. It all makes for interesting reading.
Just my thoughts for what its worth.
ATS Price at posting:
4.9¢ Sentiment: Hold Disclosure: Held
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