I view the pipelines like the rails. Building any new lines is getting increasingly difficult. Existing lines in the ground are only going to become more valuable over time.
Same thing with oil sands producers with operations in production. They are sitting on huge reserves with no declines, producing oil at 20$ bbl op costs in a world where OPEC has put a floor at 60$, in an environment where the west is increasingly hobbling domestic production. They are like a utility throwing off massive amounts of FCF. And they are working on the hard ESG front. And the best part is everybody hates them so they're still cheap as hell. Not as cheap as last summer, but still cheap.
__________________
There are some who can live without wild things, and some who cannot. Aldo Leopold
|