Elm Ridge Capital Management – Oil Market – Price, not economic growth, has a greater impact on trend demand [SLIDES] – ValueWalk Premium
Elm Ridge Capital Management Oil Prices

Elm Ridge Capital Management – Oil Market – Price, not economic growth, has a greater impact on trend demand [SLIDES]

Elm Ridge Capital Management presentation on energy investments, hit hard by oil prices but they think the opportunity is compelling.

H/T a reader
What We Think

  • Oil is unlike other commodities because it depletes and requires constant reinvestment
  • Depressed prices will hit future supply. US production has begun to fall and will leave the world undersupplied by mid-2016
  • Higher oil prices are needed to incentivize enough new production to meet demand
  • Price, not economic growth, has a greater impact on trend demand
  • Our holdings have enormous upside

How Did We Get Here?

Elm Ridge Capital Management: Oil Prices - Lower For Longer?
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Quicker payback periods and easy credit drove the shale boom

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That Did Not Sit Well With The Saudis

SORRY!

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