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The future is one where petroleum products likely will continue to play a major role, says David Rosenberg. Article content By David Rosenberg and Ellen Cooper Oil and gas stocks were undervalued and under-owned even before the pandemic, but they have been even more unloved since the collapse in global demand in 2020. We have previously explored the case for energy infrastructure and pipelines in particular, but, as always, our recommendation is not just built on today’s valuations, but on the larger macro environment of this theme. The COVID-19 pandemic caused significant interruptions in the production and storage of oil, as we saw last April when the price per barrel of U.S. crude briefly went negative. But it also resulted in a drastic sector cut-back in capital expenditures, given the demand detonation globally and uncertainty around the virus’s trajectory and economic recovery. Indeed, the International Energy Agency has estimated that upstream oil and gas investments — meaning those in the exploration and production of oil — fell 28 per cent globally in 2020. By comparison, during the severe oil market downturn in 2015 that decimated many producers (particularly in the U.S. and Canada), these investments fell only 12 per […]
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