$Elixir Energy Ltd(EXR.AU)$ The share price hits a recent top of 18 cents during the peak of US-Iranian-Israeli war before correcting back. The question on many people minds is if peace is finally here and the Strait of Hormuz is finally opened for good... it appears to be so with recent events, Trump urging constraint from Israeli despite the fighting going on in Lebanon. Iran also only briefly returned fire when US did their target strikes around its coastal region. Negotiations in Switzerland have just been completed and a roadmap has been agreed upon by both parties.
In theory, this doesn't look too good for oil and gas play like Elixir Energy. On a broader picture, nothing much really changes for oil and gas play. With infrastructure in the Middle East damaged, it would take a long while for back to normal biz. Furthermore, all of these have little impact on Elixir Energy. It's after still in exploratory phase. Gas is definitely firm, so is some oil (defined by it's condensation), however it will take a while more to plan the best course of action prior to production. For now, it is just mapping its resources.
Energy is an important component in the old and even more so in the new economy. With AI, we can't get enough energy. Cryptocurrency mining craze has simply be taken over by AI euphoria. Does not matter which technology play, energy needs are always there! Oil and gas are not going to go away anytime soon. In the near to middle term, green energy is still a faraway vision rather than outright reality.
The potential for this Queensland oil and gas play is too big to ignore, but there is still plenty of time. If peace does return to Middle East, oil prices might correct further. However there is a limit to this correction. I am looking at oil and gas, with nuclear energy thrown into the mix, as much as many see AI play. Basic materials and energy are simply essential components if AI is to sustain. It might not be an immediate issue but if we believe in long term AI growth, why not long term commodities boom as the next wave to come? [Surprised] [Silence] [Doubt] [Evil] [Chuckle]
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- BernardGilbert·12:32EXR being early-stage is the key. If oil cools, does the gas angle still carry this?LikeReport