Big Oil: This is Why It’ a Game Worth Playing

[BlackTortoise + 103]

Lots of analysts coming out with some of the smartest takes on Big Oil I’ve seen lately, and why we should be very interested, despite the fact that share prices aren’t reflecting higher oil prices. 

But the growing consensus seems to be that Big Oil has entered the “restraint” phase. This phase sees backwardation, cost deflation and consolidation. 

Earnings have been great. There was another post on the forum recently by someone showing some great charts about how the Energy sector is actually seeing the fastest growing EPS. (I’ll find those charts again). 

But it’s not showing up in share prices—yet. 

I’ve seen some other, similar, analysis recently, but Goldman Sachs is definitely among them. Goldman nots that the oil giants have actually been generating more profit at $50/$60 oil than they were at $100 oil. 

  Bottom line: They’ve adapted and are now stronger than they’ve ever been.  Watch for major cash flow growth over the long term …  Any naysayers?

Edited March 27, 2018 by BlackTortoise