Canadian Manager Optimistic on Global Oil Industry

Posted : February 27, 2024

As signs of a slowdown in oil demand emerge, a Canadian portfolio manager maintains a bullish outlook on the global oil industry. He believes that while current trends may imply a reduced appetite for oil, there are still a number of reasons to be optimistic about the industry's future.
1. Despite signs of a slowdown in oil demand, a Canadian portfolio manager remains optimistic about the future of the global oil industry.
2. He cites ongoing geopolitical tensions, increasing demand from expanding economies, and technological advancements reducing extraction costs as reasons for his positive outlook.
3. The manager believes that the shift towards renewable energy, while important, will be a lengthy process, leaving oil as a crucial resource for the world in the meantime.
4. He argues that oil industry remains appealing for investment due to these factors.
5. The manager views the signs of a demand slowdown as a temporary setback rather than indicative of a long-term trend.
According to the International Energy Agency, global oil demand is expected to rise from 97 million barrels per day in 2020 to 104 million barrels per day by 2040.
According to him, several factors continue to make the oil industry an attractive investment. These include ongoing geopolitical tensions, the burgeoning demand from growing economies, and recent technological advancements that have significantly reduced extraction costs. Additionally, the shift towards renewable energy, although finite, is a process that will take time. Until then, oil remains a crucial resource fuelling the world, thus insulating the sector from immediate drastic decline. Therefore, he believes that the signs of a demand slowdown are just a temporary setback and not indicative of a long-term trend.