Quote:
Originally Posted by bizaro86
I've seen a number of arguments that O&G is the new tobacco.
Low reinvestment, high cash flow from a shrinking business, where volume declines are made up with price hikes. All cash flow returned to shareholders via dividends/buybacks. Everyone hates you, and ESG funds and many mainstream investors won't touch your stock.
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Reinvestment will have to come back as fossil fuels are not going anywhere and the supply side is in for a rough time. High prices will see reinvestment coming back. Hopefully everyone is level headed this time and don't go full ham on investment because I am getting real sick of the ups and downs.
It may be like tobacco currently, but when people are paying the price in transportation, heating, and general energy costs they will turn their opinions around real quick. Tertzakian already a good article in the National Post this week and everyone should read it.