How to invest in oil? For the risk taker oil futures with leverage, or a leveraged oil fund like $UCO or $NRGU .. For less volatility and still high upside look at the major oil companies. In the comparison table below all have substantial growth (EBITDA – Cashflow) but valuations vary significantly.
I added a chart to show relative valuation, EV/EBITDA vs EBITDA growth. I have $EQNR.OL as a major oil and gas co that stands to gain from a gradual or not so gradual EU exito from Russian oil/gas. $BP.L also stands out but still needs to take a significant write down from its Rosneft stake. Total and Shell as well are in a similar dilema. Two Australian oil stocks stood out that are not on eToro.
It’s also likely that these consensus estimates do not factor in US$100 oil yet. Analyst and Corporates, for the most part, are content to be conservative.
The long term future of the sector is, in my view, very positive. In order to stimulate renewables and reduce oil dependence, the world needs high and expensive oil prices. $OIL
