Wilsons’ James Karakatsanis says oil demand is as robust is as it was 20 years ago, but the poor outlook for supply bodes ill for economies while being good for investors.
For the last five years, James Karakatsanis has been on the inside of Big Oil, helping to assess new exploration prospects at ExxonMobil. But now the geoscientist, who has just joined Wilsons as the financial advisory firm’s energy analyst, has delivered a stark warning about what awaits the sector.
The problem is supply, which Karakatsanis says will struggle to match this robust demand picture. He estimates that underinvestment in supply since 2016 is now $US1.
The flip side of this for investors and energy producers is that periods of underinvestment have tended to usher in periods of super profits. Karakatsanis has launched his sector coverage with “overweight” recommendations on Strike Energy and Beach Energy, both of which he says benefit from these macro tailwinds and the tight conditions in Australia’s east coast gas market.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘A few sleepless nights’: Eddie unveils first Wallabies squad, Hooper and Slipper to share captaincyMichael Hooper and James Slipper have been named Wallabies co-captains in a 34-man squad for the Rugby Championship that saw coach Eddie Jones select eight uncapped players and five offshore stars - but omit several high-profile players.
Read more »
Liberals needs to go back to ‘real conservative principles’Sky News host James Morrow says there’s a “big lesson” for the Liberals to go back to the “real conservative principles”. “Not this sort of, nonsensical live and let live stuff,” Mr Morrow said.
Read more »