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Ryan Jackson, CEO, Newlox Gold Ventures Corp.

Ryan Jackson
CEO | Newlox Gold Ventures Corp.
60 Laurie Crescent, V7S 1B7 West Vancouver (CAN)

info@newloxgold.com

+1 778 738 0546

Newlox CEO Ryan Jackson on building a green gold producer with a rapid growth trajectory


Nick Mather, CEO, SolGold PLC

Nick Mather
CEO | SolGold PLC
1 King Street, EC2V 8AU London (GB)

emichael@solgold.com.au

+44 20 3823 2125

SolGold CEO Nick Mather on building a major gold and copper mining company


Jared Scharf, CEO, Desert Gold Ventures Inc.

Jared Scharf
CEO | Desert Gold Ventures Inc.
4770 72nd St,, V4K 3N3 Delta (CAN)

jared.scharf@desertgold.ca

Desert Gold Ventures CEO Jared Scharf on West Africa and its potential


10. March 2020 | 11:40 CET

Baytex Energy, Husky Energy, Saturn Oil & Gas - why Canadian oil now?

  • Oil

The oil industry around the globe had an unexpected start to the week, marked by a collapse in the price of oil. Last Friday, WTI was still trading at over USD 41.00 per barrel and at the start of the week the price fell briefly to below USD 28.00 per barrel. This was preceded by the announcement that Saudi Arabia will increase its production volume because Russia will not participate in a joint cutback. The defiant reaction of Saudi Arabia sent the oil price and the stock markets around the globe into a downward spiral.

time to read: 2 minutes by Mario Hose


 

Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

About the author


World economy as a plaything

There is much room for speculation about the motives and reasons why Russia and Saudi Arabia have not come up with a common ground to curb the amount of oil. The reason for the talks was the decline in demand for oil in connection with the Corona crisis. One possible common reason was that they wanted to slow down the USA, now the largest oil producer. A large part of US production is obtained through cost-intensive fracking, and a low oil price makes the development of new fields uneconomic.

OPEC and Russia miss profits

However, this type of predatory pricing is not cheap. After all, the OPEC countries hold around 80% of global reserves. Since 1960, the population of these countries has risen from less than 100 million people to over 500 million. In countries with a diversified economy, the price of oil plays a more subordinate role than in the producing countries, which are still dependent on the price of 'black gold'.

In 2018, the USA produced around 11.0 million barrels of oil per day. Russia produced around 10.5 million barrels per day in the same period and Saudi Arabia around 10.3 million barrels per day. Of these three countries the economy of the USA is the most broadly based and therefore Russia and Saudi Arabia are currently hurting themselves and the OPEC countries substantially with the lost profit.

Hedging protects the oil market

On the Canadian stock markets, oil producers came under enormous pressure. The market value of Baytex Energy collapsed by 40% to CAD 353 million and Husky Energy fell by over 30% to CAD 3.5 billion. The value of Saturn Oil & Gas declined by 21.7% to CAD 21 million - an amount that is probably not far from the total revenue in 2019. Given that oil producers usually hedge their future production volumes in connection with credit financing at an already agreed price, the price collapse on Monday will hardly be felt in the short term. For investors who assume that the low oil price will only be temporary, the price declines are an excellent entry opportunity.

Importance of the producing countries will increase

In view of the fact that Canada is in a much better position than most OPEC countries when it comes to protecting human rights and the environment, it will only be a matter of time before one or the other oil-producing country is frowned upon by society. Then also the import of OPEC oil to Canada for the mentioned reasons should find an end. Anyone who wants to position themselves in the oil sector with shares will find attractive opportunities in Canada under ethical and moral aspects in the current environment.


Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

07. October 2020 | 12:24 CET | by André Will-Laudien

BP, Royal Dutch Shell, Saturn Oil & Gas: The rebound with an announcement!

  • Oil

When someone talks about the largest commodities market in the world, they mean the oil market. Every day, almost 100 million barrels of black gold are produced and delivered worldwide, even though Elon Musk adamantly claims "Oil is out!” - He would be particularly well advised to find out how many oil products are used in a Tesla. More than 300 components are made of oil derivatives. According to British Petroleum, undoubtedly one of the major players in the industry, the global oil demand peaked in 2019. In its annual energy outlook, the energy company predicts a global decline in oil demand but a strong gas demand until 2050. Renewable energies are the fastest-growing energy sources over the next 30 years.

Read

24. September 2020 | 13:10 CET | by Mario Hose

BP, Saturn Oil & Gas, Shell: Citigroup and Goldman Sachs see oil price at USD 60

  • Oil

Oil producers may be facing an exciting turnaround. The experts from Citigroup and Goldman Sachs see the price of oil in 2021 already back at USD 60.00 per barrel or even above. The statements of the analysts are supported by the assumption that the current oversupply will have been reduced by then. The recovery of economies around the globe will bring demand for oil back to pre-corona pandemic levels by the end of 2021.

Read

21. August 2020 | 08:00 CET | by Mario Hose

BP, Saturn Oil & Gas, Shell - why this share is now interesting

  • Oil

The Corona pandemic is still keeping politics and business busy. The restrictions in everyday life are causing many changes for people. An end to the situation is not yet in sight and therefore great hope is being placed in the development of a vaccine against Covid-19. Those who want to position themselves for the time after this phase have excellent opportunities with the oil sector, one of the largest markets in the world.

Read