| | | Hi Steve,
I was marveling at the percent rise also.
I know I should double down.
Val is my loser to harvest in 2020.
So far I have a good year going for options that have expired to 00.00. At this rate my gains will be tax free with no TLCF for 2021.
I have to be careful on the wash sale.
If I understand it correctly, once I sell the Val, I must wait 60 days, before doubling down.
I'm not so sure I'll even get back into this sector. It has been a long wait already.
That being said, they have an impressive array of unutilized equipment.Gulf of Mexico, Guyana, Nigeria, The North Sea and Brazil have a lot of oil yet to be pulled from the deep depths.
I did not expect the fracking of shale oil to be as productive as they've been. XOM says they're good to at least 2040, and that was with a bigger Capex this year. As they and CVX taper Capex, it will extend the resource out further.
I thought that sovereign oil companies would continue UDW drilling, as it is often their greatest source of revenue. The critical factor will be UDW drilling company's ability to lower costs. I thought that Val's pickelling innovation is a step in the right direction - need many more of those savings.
As the drilling rig count collapses in the US, cost of operating on land will continue to lessen.
Bottom line - peak oil was one of the longest and most expensive scams ever committed. It has been ongoing all of my entire life.
A paradigm shift of the greatest dimensions. Innovation indeed can be creative destruction.
Bob |
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