Recovery in Oil and Gas prices and stocks looks sustainable. Stocks still represent a good investment opportunity in our opinion.
Energy stocks benefit from limited investment in oil and gas production and development.
Concerns over global warming and greenhouse gas emissions limit capital flows to the oil and gas industry. This lack of capital has reduced the amount of new development and production.
US drilling activity down thus lowering supply.
Demand for oil has recovered to 2019 levels and is poised to grow at 3% for the next several years.
Increased demand has eaten into OPEC’s excess capacity cushion.
Lower supplies of oil result in higher price.
US supplies unusual lack of response to higher price means prices will stay higher longer.
Stocks we like:
Civitas Resources CIVI 52.89 Dividend Yield 3.55%
Petróleo Brasileiro – Petrobras PBR 13.42 Dividend Yield 15.21%
Ovintiv Inc. OVV 40.52 Dividend Yield 1.39%
Suncor Energy Inc. SU 28.89 Dividend Yield 4.58%
Antero Midstream Corporation AM 10.14 Dividend Yield 8.77%
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