Ben Cook, CFA, Portfolio Manager, Provides an Energy Sector Update

By BP Capital Investment Team - February 23, 2021

Year to date gains across the energy sector reflect an improvement in fundamentals and portend well for further gains supported by both cyclical and secular drivers that should persist through the remainder of the year.

Key highlights from the sector update include: 

  • Covid-19 vaccination is picking up pace, and we see that building confidence to gradually normalize economic activity. U.S. GDP should show considerable expansion during 2021.
  • OPEC market stabilization efforts combined with measured activity improvements in the U.S. should set the stage for stable and rising commodity prices during 2021, a cyclical commodity rebound is underway.
  • Renewables represent a rapidly growing segment of the energy sector that will continue to flourish under the Biden administration. We see secular growth underpinning the performance of a variety of renewable sub-sectors in 2021.
  • Corporate governance across the energy sector has steadily improved in recent years. We believe and enhanced focus in generating total shareholder return will direct much of the energy sectors rebound to the hands of energy investors in the coming year.

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Contacts: Toby Loftin 214.405.8278 (m) 


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