Q: Interesting article today in Wall street journal on Canadian oil sand producers.
i like this point: More recently, some companies have started replacing human-operated trucks with autonomous ones. Suncor Energy sees room for even more efficiency: On a call with analysts last month, the company said the WTI crude-oil price at which it can reach corporate break-even could come down by $10 a barrel, or about 19%, by year-end 2026.
Perhaps Buffet will buy in again (not sure if he sold his whole position).
i like this point: More recently, some companies have started replacing human-operated trucks with autonomous ones. Suncor Energy sees room for even more efficiency: On a call with analysts last month, the company said the WTI crude-oil price at which it can reach corporate break-even could come down by $10 a barrel, or about 19%, by year-end 2026.
Perhaps Buffet will buy in again (not sure if he sold his whole position).
5i Research Answer:
It is true that the oil industry is getting more efficient year after year thanks to automation and more advanced drilling techniques. As of today Mr.Bufffet does not own any shares of SU, he used to be SU’s shareholder until Q1-2021 when he sold all of his position. That being said, SU is a very well-managed oil refinery company, and the company is generating lots of cash flow for buyback and dividends, we would not be surprised to see Mr. Buffet as a buyer again. Automation can be a big $$ saver. We have met truck drivers working in the oil patch making upwards of $200,000 annually.