Oil and gas E&P share prices in both the United States and Canada have been underperforming compared to the broad indices. This week’s podcast discusses the causes and what it could turn things around. A critical ingredient for improvement is that companies prove they can make money in an era of abundant supply and lower price levels, while lowering their Environmental, Social and Governance (ESG) risk. Specific to Canada, improved market access is critical. And while pipelines are still progressing, alternative modes of oil transportation are evolving too — with the potential for creating Canadian oil export diversity, optionality and resiliency.
This podcast refers to our SnapChart “The Market Disconnect” that shows indices for upstream oil and gas equities. It also references the past ARC commentary “Issues that are Weighing on Oil and Gas Investment”.