GulfSlope Energy Inc (GSPE)

[smith199]

Those that held their long positions in the oil industry are still smiling. A big bounce back in price, a dividend, and a hedge against inflation. How is that inflation treating your dollars?

Interest in U.S. production is moving along and picking up the pace perhaps. Rumor has it Exxon may purchase Pioneer Natural Resources. “Texas-based Pioneer is claimed to be the leading oil producer in the Permian Basin and generated $8.4bn in cash surplus last year.” I see this as an indication that Exxon recognizes the future stability of WTI, or there would be no interest in a multi-billion dollar deal. This will transfer to the GOM as well.

Reminder, profitability for shale drillers is around $60/bbl. This is largely due to the fracking costs. But, offshore shallow GOM is noticeably lower. So the Gulfslope focus on buying current GOM production appears to be a good call.

Bottom line, the EIA’s forecast through 2050 predicts: crude oil and natural gas will continue to play a major role in the energy mix, EVs will occupy a minor portion of the transportation market, and natural gas will still maintain it’s position as a critical source for electricity generation (which includes the 1,000% increase in the reliance on solar for electricity generation). So, the future of oil drillers is assured by the forecast of their biggest opponent.

The time interval of a trade for many on this board is preferred to be short. The shorter the better. And that is okay. It is just that ‘short’ will happen to be the size of profit on that trade too. And although many here know of my disdain for ‘penny ante’, it really should not bother me if it does not bother anyone else.

Link to Exxon article:

https://www.offshore-technology.com/news/exxon-pioneer-natural-resources-deal/




Mrs. Smith