Listen up, oil fans: It’s over. The glory days of this latest energy bull market are now in the history books. Or so says Peters & Co. Ltd., a brokerage specializing in oil and gas in Calgary. Oh, and that’s not even the bad news.
The report says:
Although the data points are few, the time period from the end of a major energy bull market to the start of the next can be lengthy, ranging from five years to 15 years.
The resiliency of Asian demand and the capital spending reactions of producers will dictate how quickly we reach a squeeze point on supply and demand for crude oil again, but the early indications are that it could be sooner rather than later.
“Is it different this time?” Tough call, but Peters’ thinks investors won’t have to sweat it out for a decade.
Until then, keep an eye on those soggy natural gas prices. With Old Man Winter banging on the door, they may prove to be “relatively more resilient,” with the possibility of prices spiking on cold snaps.
Peters’ top picks for gas weighted concerns are: EnCana Corp. (ECA), EOG Resources Inc. (EOG), NuVista Energy Ltd. (GM:NUVSF), ProEx Energy Ltd. (OTC:PXEYF), Progress Energy Ltd. (PGN), Storm Energy Inc. (SCU), and Orleans Energy Ltd. (OTCPK:OEXFF).