- The emergence of peak oil demand expectations, coupled with the shale boom that seemed to usher in an era of permanent oil gluts caused Suncor's ample reserves to be undervalued.
- There is to date no evidence that in the absence of a global economic crisis there can be stagnation or contraction in oil demand.
- The US shale boom is showing signs of stagantion and may enter contraction within a few years, when the Permian field will run out of prime drilling locations.
- Given that conventional oil production has been more or less stagnated for over a decade, Canadian oil sands may be the last source of global oil supply growth.
- Suncor has a proven record of being able to produce oil sands at a cost that is similar to the average cost that most oil majors need to keep production going. It could revisit its 2008 stock price record.
For further details see:
Suncor Is The Ultimate Contrarian Oil Investment