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Non-Tech : Kirk's Market Thoughts

COHR 154.52

-3.0%

Nov 7 9:30 AM EST

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To: Elroy who wrote (15022)	12/28/2022 8:25:51 PM
From: robert b furman	Read Replies (3) of 26440

Hi Elroy, Hope you and family enjoyed Christmas stateside this year. Multiple reasons: In past E&P companies had huge pressure to always build reserves. CVX was lucky, past legacy leases had been fruitful and then with the technology of fracing they found not one but sometimestwo layers of shale below the legacy leases. It always pays to be lucky AND have very low cost crude. XOM has IMO superior technology with regards to find where oil is located. They paid big to buy out LGO ? which had huge Permian acres. Every body said they were crazy, bbut they are the last to laugh. The other yet to totally be realized is Guyana. After every one before them drilled dry holes XOM started finding big oil and using FPSO ships to process oil and gas from deep water. Done with XOM's modular technical capabilities they are one of the biggest :"NEW OIL" producers for the last 3 years with plans to double production in this decade.Couple that with their Science to produce plastics of many kinds and chemicals, they have a huge customer base for specialized production that spans the globe. Now they are balancing balls to wall production discovery and refinery expansion, with development of refineries and co-located plastics and chemical plants concentrated in Tx and Louisiana with pieplines from Permian and the gulf of Mexico. Concentrate at low cost wells and able to export from the gulf. Long time forward planning and the reserves to back it up. They have the world's largest steam cracker in Corpu Christi and a joint venture with SABIC Saudi Arabia basic industries corp. Huge balance sheet and connections that literally span the world ESG tried to restrict capital to E&P's in general, but XOM and CVX have their own cash flows that keep them safe and steady money makers. ESG's impact has hindered the small independents. I think ESG is a Wall Street Scam and is losing its bloom. Never made any money and literally restricted funding of Capex in the oil patch, which has in fact helped margins. Numbnuts investing that never made money and helped those they through down on by blaming fossil fuel producers who provided reliable AND inexpensive energy. The reason the US is not in a recession is substantially die to our fossil fuel resources and ability to produce them. IMO When an/if energy crisis is triggered these stock will be looked back upon and viewed as cheap. IMO Check out balance sheets, free cash flows and margins, vs the market in general. THEY ARE THE VALUE STOCKS OF THE US MARKET! Thank you to the ESG fools. IMO Bob

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