Okay granted some oil company shares look attractive. But how do you avoid the possibility of a huge windfall tax that might suddenly hit you!? Profits are socialized these days, oil companies aren't allowed to earn a good profit which is ironic considering how much some other companies like Apple and Alphabet earn!
How do you see new oil found per year visit consumed oil per year. I've seen figures of say we consume 36 billion barrels/year, but we find on average for the last 10 years 8-10 billion barrels/year. This does not add up so how will it affect the industry and the price?
I'm not sure on the numbers, but I do believe we are facing a massive oil deficit in the years ahead and the floor for oil prices will be $80 to $100 a barrel.
I personally think royalties are an excellent way to play the sector. Not as much upside but really mitigates risk and gives you diversification with one investment.
Good question, I can't speak for Josh but I mostly use the XLE ETF to get exposure and am invested in WCP. I do know Josh likes JOY, as he's mentioned it before.
@@rickfool1452 dont agree to this. He is very transparent in the information he shares on youtube, interviews and on twitter. Not sharing picks directly is not selfish at all if you ask me. Do your own DD. Josh has given me great information for a prolonged time now, very helpful and a great source of oil & gas information overall.
@@rickfool1452 I did not knew that, but you are right I have only seen more general recommendations shared from him. So the interviews with him gets a bit boring if he want to keep,everything for himself and promote himself on youtube and twitter.
This 23:03 confirms my own approach. My slightly different perspective is that I'd like to see a company loaded with debt but also with the ability to pay it down, and a demonstrated ongoing commitment to pay it down. Why opt for high debt when the perception is that a healthier balance sheet is better? Simple. A high risk balance sheet results in a stock trading at a deeper discount. In this case, the balance sheet provides the opportunity for significantly large gains over time as management works towards paying off debt and de-risking the balance sheet. As de-risking happens, the stock warrants a higher multiple. Significant stock gains can happen purely for getting the balance sheet back to a healthy status. Essentially, investors get paid for taking higher risk. The danger is; a company with an unhealthy balance sheet goes deeper into debt and increasingly becomes unable to pay down or even service debt. This could happen because of rising cost of capital, lower demand, lower margins, higher operating expenses, etc. This is why a rock solid CEO, CFO and board are crucial. However, even with a solid management team, debt can be so great that even a highly experienced team cannot pull-off a recovery. This is where highly critical analysis during iterative and endless due diligence is necessary. Range Resources should be a case study for why this approach can work. Success is never guaranteed. Financial risk can wipe out a company, so never assume this works in every case, it doesn't.
I absolutely LOVE him fooling himself. Apparently they haven't paid attention to Tomy Seba and RethinkX. Their long term projections are the most accurate. There always be SOME demand for oil.But it takes a small amount of disruption to destroy a market. Transitions and market transformations have happened for years., When they come in they come fast.
@@CommodityCulture lol how much do you get paid to make this dumb yt channel? there's no way this is a real interest, it's so professional looking yet it has 13k followers. Dance for the devil, baby, dance!
I LOVE them fooling them selves. The fossil fool bubble is about to burst. Follow Tony Seba and RethinkX. Short term we need more fossil fools , BUT we are on the edge of a major disruption. We are on the cusp of the fastest, deepest, most profound disruption of the energy sector in over a century. I see he mentioned Battery Materials conference on NOV 22. Big disruption.
Okay granted some oil company shares look attractive. But how do you avoid the possibility of a huge windfall tax that might suddenly hit you!? Profits are socialized these days, oil companies aren't allowed to earn a good profit which is ironic considering how much some other companies like Apple and Alphabet earn!
This is certainly a valid concern, which is why I think it's important to be geographically diversified in one's oil company holdings.
Once again Jesse….your one of the best interviewers on UA-cam. Thank You Sir
Thank you really appreciate that!
How do you see new oil found per year visit consumed oil per year.
I've seen figures of say we consume 36 billion barrels/year, but we find on average for the last 10 years 8-10 billion barrels/year.
This does not add up so how will it affect the industry and the price?
I'm not sure on the numbers, but I do believe we are facing a massive oil deficit in the years ahead and the floor for oil prices will be $80 to $100 a barrel.
Any thoughts on royalty plays like STR?
I personally think royalties are an excellent way to play the sector. Not as much upside but really mitigates risk and gives you diversification with one investment.
LOL dude wow the physical uranium at the end, that is awesome. Nice interview
Thank you, and yeah I love that uranium cube.
What are Josh Young top picks? What stocks in oil&gas industry are great at current valuations?
are there no specific stocks recommended in the interview?
@@rickfool1452 Many oil stocks have at least 8x'd from their 2020 lows.
Good question, I can't speak for Josh but I mostly use the XLE ETF to get exposure and am invested in WCP. I do know Josh likes JOY, as he's mentioned it before.
@@rickfool1452 dont agree to this. He is very transparent in the information he shares on youtube, interviews and on twitter. Not sharing picks directly is not selfish at all if you ask me. Do your own DD. Josh has given me great information for a prolonged time now, very helpful and a great source of oil & gas information overall.
@@rickfool1452 I did not knew that, but you are right I have only seen more general recommendations shared from him. So the interviews with him gets a bit boring if he want to keep,everything for himself and promote himself on youtube and twitter.
Excellent and informative video, thank you.
Thank you for watching!
Great primer for new oil and gas enthusiasts!
Great, glad it can provide value!
Great guest!
Agreed, thanks for watching!
This 23:03 confirms my own approach. My slightly different perspective is that I'd like to see a company loaded with debt but also with the ability to pay it down, and a demonstrated ongoing commitment to pay it down. Why opt for high debt when the perception is that a healthier balance sheet is better? Simple. A high risk balance sheet results in a stock trading at a deeper discount. In this case, the balance sheet provides the opportunity for significantly large gains over time as management works towards paying off debt and de-risking the balance sheet. As de-risking happens, the stock warrants a higher multiple. Significant stock gains can happen purely for getting the balance sheet back to a healthy status. Essentially, investors get paid for taking higher risk. The danger is; a company with an unhealthy balance sheet goes deeper into debt and increasingly becomes unable to pay down or even service debt. This could happen because of rising cost of capital, lower demand, lower margins, higher operating expenses, etc. This is why a rock solid CEO, CFO and board are crucial. However, even with a solid management team, debt can be so great that even a highly experienced team cannot pull-off a recovery. This is where highly critical analysis during iterative and endless due diligence is necessary. Range Resources should be a case study for why this approach can work. Success is never guaranteed. Financial risk can wipe out a company, so never assume this works in every case, it doesn't.
Excellent comment with great insight, thank you!
An excellent thought out summary.
Love Josh - great get Jesse!
Thanks, he shared a ton of knowledge!
Super informative Jesse
Thank you, glad you could get some value from it!
What no digs at Pantheon??
Thanks!
Thank you very much for the Super Thanks!
I absolutely LOVE him fooling himself. Apparently they haven't paid attention to Tomy Seba and RethinkX. Their long term projections are the most accurate. There always be SOME demand for oil.But it takes a small amount of disruption to destroy a market. Transitions and market transformations have happened for years., When they come in they come fast.
Renewables are a pipe dream, what are you going to do when the whole charade collapses?
absolute disgrace, the planet is burning
We're ALL going to die tomorrow! Quick, everyone glue yourselves to paintings and sit down on the highway wearing orange vests!
@@CommodityCulture lol how much do you get paid to make this dumb yt channel? there's no way this is a real interest, it's so professional looking yet it has 13k followers. Dance for the devil, baby, dance!
I LOVE them fooling them selves. The fossil fool bubble is about to burst. Follow Tony Seba and RethinkX. Short term we need more fossil fools , BUT we are on the edge of a major disruption.
We are on the cusp of the fastest, deepest, most profound disruption of the energy sector in over a century.
I see he mentioned Battery Materials conference on NOV 22. Big disruption.
Remember what you said later this winter when people in Europe, Ukraine, northern US & Canada are freezing to death.