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This week on Talk Ya Book, former AFL star – now Cerutty Macro Fund portfolio manager – Chris Judd is joined by Michael Goldberg, MD of Collins St Asset Management to discuss the oil and gas industry.
“I think fundamentally as a sector it’s been deeply misunderstood and I think there’s been a political/cultural agenda that has driven a lot of the financial decision making for a lot of the companies that are connected to that sector, and it’s created some very strange, and weird and wonderful circumstances,” Michael Goldberg said.
“There’s been a major underinvestment in the sector for the better part of a decade on the assumption that renewables would almost immediately replace traditional energy and that there would be rapid drop off in demand for oil and gas and traditional energy in general.
“I think people fundamentally misunderstand oil in particular.
“Occasionally when I’m driving to work, we go past these protests where they’ve got signage up saying ‘end oil’, ‘end fossil fuels right now’ and God bless them for their intent and their efforts and I understand the concept and I appreciate it.
“You drive past in the autumn and winter and they’re in their puffer jackets and their non-leather shoes which are of course made of oil!
“I think people just imagine oil is just used in transport which is not at all the case.
“Demand for oil is probably going to be robust well into the 2040s.”
Chris Judd and Mr Goldberg discuss Carnarvon Energy (ASX:CVN), a company with a market capitalisation of $330.6 million which is focussed on the Dorado project in the Bedout Sub-Basin offshore of Western Australia.
Carnarvon Energy has been trading at 18.5 cents.
Juddcorp Pty Ltd ACN 635 629 631 is a corporate authorised representative (CAR) (CAR Number 1300536) of Boutique Capital Pty Ltd ACN 621 697 621 AFSL 508011.
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