Whether you are currently for or against oil and gas stocks as...

Whether you are currently for or against oil and gas stocks as an investment there is no end of opinions/articles around to support your view.

The ‘against’ crowds arguments centre around the quick transition to renewables incl the EV revolution as well as the general reluctance to invest (by big funds in particular) driven by the political/social repulsion towards oil and gas.

I’m still firmly of the view that oil and gas stocks have another burst in them (incl WPL @$30 plus) so found some content in the article in the weekend papers ‘Squeezing One Last Drop From Big Oil’ quite reassuring.

Here are my favourite pieces of reassurance (cherry picked of course!) :

“While a dark cloud hangs over the long-term outlook, the threat to oil and gas is far from immediate. Ironically, there appear to be some decidedly good years ahead, especially as supply is more likely to take the hit from climate pressure rather than consumption. As countries emerge from the worst of the coronavirus pandemic, the world is ravenous for oil and gas”

“He says there has been a “buyers’ strike” on oil and gas, where the number of sellers has outstripped buyers, which has pushed down share prices, further accelerated by the fossil fuel divestment movement. But he has doubled down on the stocks, incrementally increasing his exposure in anticipation of a rally”

“Clearly the commodity is structurally challenged on a longer-term basis, there is no question about that whatsoever,” he says. “But in the neartime, we see one last bull cycle.”

One Last Bull Cycle - sounds good to me.