Why Warren Buffett and David Tepper are Loading Up on Energy Stocks (CNBC) A historic economic comeback is sending some of the world’s biggest investors bargain hunting in the unloved energy sector. Warren Buffett’s Berkshire Hathaway bought more than 48 million Chevron shares, worth $4.1 billion, last quarter, making the oil name the conglomerate’s 10th biggest equity holding. Meanwhile, three energy companies – Energy Transfer, Occidental Petroleum and PG&E— made it into David Tepper’s top 12 holdings by the end of 2020, worth more than $800 million combined.
In 2018, the IEA's world energy outlook report forecast that if prices did not rise enough to finance more spending on exploration and drilling (they haven't), then by 2025 we would be looking at a HUGE shortfall between global oil production and the economy's needs for it. When I saw the projection in their chart, my heart skipped a beat. This would pose a civilizational crisis if it actually came to pass. Okay, I found it, here it is: https://damnthematrix.wordpress.com...-outlook-peak-oil-is-here-oil-crunch-by-2023/ If new deposits are not produced, in just 7 years [now 5 years] from now we will find that the production is 34 Million barrels per day (Mb / d) below where it is expected that the demand will be, or about 25 Mb / d below the demand much more moderate scenario of Sustainable Development. It is a huge hole of more than 35% of all the oil that is produced today. In the text, the IEA warns us that there is nothing particular to worry about in this terrifying graphic because there will be exploitation of new deposits that will cover that hole to a large extent. However, they warn us, to avoid that hole we would need to find deposits with resources around 16 billion barrels each year…In short: the IEA is assuming…that production in 2025 will be lower than today’s (a deficit of 13 mbd in 2025). In essence, peak oil.” It isn’t likely oil companies will make up the difference In 2016, only 2.4 billion barrels were discovered (versus 9 billion on average the past 15 years). In 2017, about 7 billion new barrels were discovered. As you can see below, there’s been an alarming lack of new crude oil found. And it’s not just cleantechnica saying there will be oil shortages, here are some other articles about the coming oil crunch: Bloomberg, NASDAQ, oilprice.com, axios calls the shortage as by 2023, financial times also by 2023 SNIP On page 159 of the IEA 2018 World Energy Outlook the following graph can be found:It is clear that Peak Oil will be hit well before 2020, while demand keeps on rising, unless the world’s Oil Majors and State Owned Oil Companies massively invest in new exploration. Graph of shortfall to 2025: Graph of shortfall projected to 2040: