Stijn Schmitz welcomes Josef Schachter to the show. Josef Schachter is the Founder of Schachter Asset Management Inc. The discussion centers on the current and future state of the global energy market, with a particular focus on oil and natural gas dynamics.
Schachter provides a nuanced view of the oil market, noting both near-term challenges and long-term bullish potential. In the short term, he anticipates oil prices potentially dropping to the $56-$58 range due to significant global inventories. However, he sees a compelling long-term narrative driven by fundamental supply constraints and declining global reserves, which require approximately 5-6 million barrels of new production annually just to maintain current levels.
He highlights critical challenges in the energy sector, including underinvestment and lengthy development timelines. Schachter emphasizes that new production requires extensive infrastructure, environmental approvals, and significant capital expenditure. He believes this complexity will contribute to a potential energy supercycle, potentially seeing oil prices exceed the 2008 peak of $147 per barrel. Canada emerges as a key focus, with Schachter noting the country’s substantial energy resources and potential for growth. He suggests that Canadian energy companies offer attractive investment opportunities, particularly those with strong balance sheets, exploration potential, and dividend yields ranging from 5-10%.
Geopolitical factors and technological innovations play a significant role in Schachter’s analysis. He discusses how new extraction technologies, such as fracking and advanced offshore drilling, continue to unlock previously inaccessible energy resources. Additionally, he sees potential risks in global trade tensions and potential economic slowdowns that could impact energy demand. Looking forward, Schachter is optimistic about the energy sector’s potential, anticipating global oil demand increasing to 110-112 million barrels per day by 2030. He recommends investors consider diversified exposure across oil, natural gas, and service industries, with investment strategies tailored to individual risk profiles and income needs.
Timestamps:
00:00:00 – Introduction
00:01:03 – Oil Market Pressures
00:03:27 – Bullish Long-Term Forecast
00:06:15 – Energy Sector Underinvestment
00:09:14 – Supply Development Lags
00:13:05 – Historical Super Cycles
00:15:07 – Global Production Overview
00:17:00 – Canada’s Resource Potential
00:19:46 – Rejecting Peak Oil
00:22:25 – Natural Gas Challenges
00:24:47 – Investment Strategies Overview
00:31:00 – Valuation and Multiples
00:37:00 – Geopolitical Risk Factors
00:42:00 – Bull Thesis Risks
00:47:06 – Uranium Market Insights
00:50:35 – Concluding Thoughts
Guest Links:
Website: https://schachterenergyreport.ca
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Josef Schachter is a 40+ year veteran of the Canadian Investment Management Industry, Josef Schachter has experienced several exceptional and turbulent global economic and stock market cycles. With his primary focus in the stock market and the energy sector, Josef is able to weave global political, economic and monetary issues with current energy data into a compelling story of what’s going on, what is to come, and why.
Josef is a frequent guest on Michael Campbell’s Podcast ‘Mikes Money Talks’ and other podcast and radio shows and is often quoted in the media. He is a regular Guest Speaker at the annual World Outlook Financial Conference in Vancouver and he delivers presentations to various companies and
Published on 1 day, 14 hours ago
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