Old School Energy

Old School Energy

20%

The focus in this thesis is the oil sector. Despite efforts to gradually reduce its use, oil remains by far the most important commodity in the world, and it is no exaggeration to say the world economy is still reliant on it.

Oil prices got smashed in early 2020 by a combination of a mistimed supply dispute between Saudi Arabia and Russia and the crushing of demand by the pandemic. Oil has recovered a good part of its prior price level but the destruction to the industry has been significant.

The US shale plays, the most important source of new demand in recent years, may only partially recover, as they were overleveraged going into the problems and had to shut wells during the pandemic, which may not reopen.

We believe the oil price will fully recover and then some, perhaps a lot more, as the world economy recovers, since OPEC suppliers need higher prices, and since the unconventional suppliers may not recover to former levels.

Among the beneficiaries of the problems in the industry are the oil supermajors, which have the strength to weather the difficulties, and the resources to take advantage by acquiring distressed assets at low prices. Many of the smaller players are much weakened.

When Investing, your capital is at risk.

Old School Energy

The focus in this thesis is the oil sector. Despite efforts to gradually reduce its use, oil remains by far the most important commodity in the world, and it is no exaggeration to say the world economy is still reliant on it.

Oil prices got smashed in early 2020 by a combination of a mistimed supply dispute between Saudi Arabia and Russia and the crushing of demand by the pandemic. Oil has recovered a good part of its prior price level but the destruction to the industry has been significant.

The US shale plays, the most important source of new demand in recent years, may only partially recover, as they were overleveraged going into the problems and had to shut wells during the pandemic, which may not reopen.

We believe the oil price will fully recover and then some, perhaps a lot more, as the world economy recovers, since OPEC suppliers need higher prices, and since the unconventional suppliers may not recover to former levels.

Among the beneficiaries of the problems in the industry are the oil supermajors, which have the strength to weather the difficulties, and the resources to take advantage by acquiring distressed assets at low prices. Many of the smaller players are much weakened.

When Investing, your capital is at risk.

Pynk One Ltd is a company registered in England and Wales (No. 12940786) with the registered office at 20-22 Wenlock Road, London, England, N1 7GU.

Thesis Portfolio is the trading of Pynk One Ltd. Pynk One Ltd (FCA reference no. 942958) is an appointed representative of WealthKernel Limited (FCA reg no. 723719), which is authorised and regulated by the Financial Conduct Authority.

Investing involves risk to your capital. Past performance is not an indication of future results; the value of your investments can go down as well as up, and you may get back less than you originally invested. The information contained herein does not constitute investment advice or investment research and should not be relied upon to make any investment decisions. References to specific assets or securities are included for illustrative purposes and should not be understood as an endorsement or a recommendation to engage in investment activities.

Please invest aware.