Woodside, page-112

I used to worry quite a bit about “peak oil” forecasts and how the energy transition would “destroy” companies I was invested in like Woodside. Then I witnessed the tremendous rally in coal stocks a couple of years ago. I was like “hey…weren’t these companies proclaimed as “doomed” with no future about a decade ago?”.

I reckon the “gas wind-down” cycle is about a decade behind the coal one. I fully expect we will see strong rallies in companies such as Woodside in the 2030’s just as we have witnessed one in coal in recent years. The demand/supply equilibrium seems to be ignored by the crystal ball gazers. It doesn’t matter much if demand continually falls from its peak if supply is collapsing due to lack of investment at the same time.