Jeremy McCrea - Gauging Momentum: Understanding the Evolving Oil and Gas Industry

On today’s episode, we welcome back Jeremy McCrea, Director of Equity Research at Raymond James Ltd. We delve into the profitability and future prospects of the oil and gas industry. Here are THREE key takeaways for you:

Technology is revolutionizing well results: By identifying companies implementing new technology and fracking designs, investors can leverage better well results and potential valuation growth. Tracking the rate of change, monitoring fracking adjustments, and following up with additional wells can lead to consistent multiple expansions for forward-thinking companies.

Transition away from fossil fuels is slower than expected: While forecasts often predict a rapid decline in oil demand, the reality is proving different. The retirement of coal plants has been delayed, electric vehicle uptake is gradual, and wealthy countries continue to have higher energy demands due to air travel and larger homes. Acceptance is growing that transitioning away from fossil fuels will be a steady journey. 

Refinery margins are on the rise: Refinery complexes are lacking, leading to increased import costs for diesel fuel. As a result, refinery margins, especially in diesel fuel prices, have significantly increased, surpassing gasoline prices. This development presents unique opportunities for investors to tap into the shifting dynamics of the energy market. 

The oil and gas industry is evolving, presenting challenges and untapped potential. As we explore these fascinating insights, it becomes clear that there's optimism in the sector with improved balance sheets and better economics of plays.

This episode is sponsored by clearmotive marketing. When it comes to marketing that truly matters to your business, clearmotive is your go-to partner. With a proven track record of 15 years, they understand what makes your business tick. Learn more at https://www.clearmotive.ca and discover how clearmotive can help your marketing thrive.

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Host links:

Tyler’s Twitter: https://www.twitter.com/tylerchisholm

Tyler’s LinkedIn: https://www.linkedin.com/in/tylerchisholm

Guest links:

Jeremy McCrea’s LinkedIn: https://www.linkedin.com/in/jeremy-mccrea-cfa-49894411

Raymond James’ Website: https://www.raymondjames.ca

Raymond James’ LinkedIn: https://www.linkedin.com/company/raymondjames-canada

Raymond James’ Facebook: https://facebook.com/RaymondJamesCDN

Raymond James’ Twitter: https://twitter.com/RaymondJamesCDN

Collisions YYC is a Tyler Chisholm original production // Brought to you by clearmotive marketing