Everything You’ve Always Wanted To Know About Oil & Gas But Were Too Afraid To Ask
Here are three things we thought You Should Know today, brought to you from London, where I’ve spent this week speaking to hedge fund managers and family offices:
1. “No” - Most large institutions in London, and in Europe, for that matter, are exiting the energy sector under tremendous pressure from ESG and anti-oil & gas groups. None of these large institutional funds want to be seen owning oil & gas stocks. It’s so bad that an energy conference in London this week was held by invitation-only behind closed doors out of fear that publicity would attract activists who would glue themselves to the conference doors or throw paint around at attendees.
2. “Yes” - UK family offices, however, who don’t have to publish their equity holdings, are very interested in the Canadian energy sector. Oil demand is as strong as pre-pandemic levels, Canadian valuations are extremely attractive, with dividends and cash flow at very high levels and growing. And, Canada is highly ranked in global ESG scores, as this chart below published by Enbridge illustrates, showing a combination of 2020 Yale Endowment Performance Index, 2020 Social Progress Index, and 2019 World Bank Governance Index.
3. Our friends at Carbon Infrastructure Partners in Canada have put together, at our request, an excellent and very readable Oil & Gas Primer. In 12 slides, with some great pics and charts, their “Oil & Gas 101 - An introduction to the oil & gas business” will tell you everything you’ve always wanted to know about oil & gas but were too scared to ask about.
If you’d like a copy, drop me a line.
Thank you so much for your continued support and interest.
Rick Peterson,
Chair