I present a bullish perspective on the energy sector, forecasting a significant upward trajectory for oil prices. I discuss WTI oil prices will range from $52-$66 in Q1 2026, rising to $74-$84 in Q4, potentially reaching $100 per barrel by 2028-2029. This projection is underpinned by several key factors, including normal demand growth of 1.2-1.3 million barrels per day and constrained OPEC production capabilities. A critical aspect of my thesis is the global lack of new oil discoveries and declining production rates. I highlight that shell oil production experiences 30-50% decline rates in the first year, necessitating continuous drilling. I note, that over a billion people worldwide lack stable electricity access, presenting a significant future demand opportunity for energy resources.

The conversation explores investment strategies within the energy sector, with  recommendations of a diversified approach based on individual risk profiles. I suggest considering natural gas, light to medium gravity oil exposure, and service industry stocks. Notably, I emphasize the importance of companies with strong balance sheets, insider ownership, and prudent management. I am particularly optimistic about Canadian energy companies, many of which are currently trading at two to three times cash flow, with potential to expand to seven or eight times during a potential energy super cycle. I point out attractive dividend yields from various energy companies, ranging from 5% to 11%. The conversation also touches on geopolitical factors, including potential developments in Venezuela and the global shift in energy production and consumption.