- Post the first comment
- Back to the blog
Wednesday's blockbuster report from the U.S. Geological Survey certainly raised eyebrows, not to mention the risk of owning energy stocks. The report concluded that the Arctic was the next frontier for energy production, holding more than a fifth of the world's undiscovered energy resources, and gave rise to two ideas: The world's energy supply is not as close to running dry as some dire forecasts would have you believe, and if energy companies have to explore beneath northern ice, then these Arctic resources are not exactly the next Saudi Arabia in terms of easy access.
So is the USGS report bullish or bearish for energy stocks? Ed Yardeni, of Yardeni Research, believes it's a bit of both.
“This report supports my view that the era of cheap oil is probably over, and that the peak oil theory may be premature in its dire forecasts,” he said in a note to clients. “So do we sell energy stocks now and buy property in Greenland? No and yes, in my opinion. If oil prices continue to tumble, we can count on OPEC to say, ‘See we told you so. The oil market has been well supplied.' We can also count on OPEC to cut production.”
Start the Conversation, Leave a Comment
This conversation is semi-moderated What is moderation? | How do I report a comment?
You must be logged-in to submit a comment — login now!
Not registered with globeandmail.com? Register now. It is quick and free.
Alert us about this comment
Please let us know if this reader’s comment breaks the editor's rules and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.
Do not use this to complain about comments that don’t break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.
