In case anyone has doubted their investment thesis for Woodside (I know I have a couple of times over the past two months!), I recommend reading the following article from the Oil Price website. I'll attach the PDF in case the link doesn't appear below:
https://oilprice.com/Energy/Energy-General/Asia-Is-Facing-A-Long-Tern-Natural-Gas-Crunch.htmlAsia Is Facing A Long-Tern Natural Gas Crunch _ OilPrice.com.PDF"Demand is set to double by 2050". That pretty much sums up our position. Sure, there's a case for renewables. In fact l bought shares in a micro-cap renewable energy company last week. I'm not against profiting from the current political environment we're in.
We're sitting on trillions of cubic feet of gas, geographically closer to Asia than anyone else. Low production and transport costs. And as Aceboy has said, ESG considerations will make future projects (supply) difficult; and we've pre-sold the majority of the volume. Importantly, we have both sides of politics on-side. And why wouldn't they be? This project is of enormous benefit for Woodside, the nation, and Asia as a whole.
It's a bit like talk of tertiary education being more expensive. If you've already got your degree, the more restrictions for everyone else in the future, the better it is for you! In that situation, you don't personally care how difficult it is for others to jump through the hoops you've already jumped through.
Asia is where future economic growth will come from as millions of people join the middle classes. The correlation between economic prosperity and energy usage is beyond question. As people get wealthier they use more energy. Businesses also use more energy to produce goods to satisfy increasingly wealthy citizens' increased wants and needs. This is a little old but it illustrates my point.
Let's hope next quarter brings a massive profit result and a healthy dividend in February! I've bought five separate parcels. This current price is around my average purchase price. I keep getting closer to that $20.00 mark. My plan is to keep re-investing dividends and averaging down if the share price gets > 10% down from my average purchase price. From there, it's just a matter of time (and perhaps a too-good-to-ignore profit result) before WPL has a strong, fast run. It's frustrating as hell but a waiting game. Demand is high and supply constrained. Demand will keep growing, and with Scarborough going ahead, l hope the woke crowd go crazy protesting about future Santos and our other competitors' projects .
Personally, I can't see any risk in being overweight WPL at these prices. Even if there is no share price growth for the next ten years, I expect dividends to be preferable to bank term deposit interest rates. The downside is limited in my opinion.
Finally, a shout out to Aceboy and Sunny. Thanks for the article links, information, and screen shots you guys regularly post. I enjoy your posts.
Best of luck to all holders here.
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