Oil, Gas, Uranium — “Unbelievable” Opportunities

Adam Rozencwajg: Oil, Gas, Uranium — “Unbelievable” Opportunities to Investyoutu.be

With winter approaching quickly, concerns about how Europe will weather the season are intensifying.

Adam Rozencwajg, managing partner at Goehring and Rozencwajg, said global governments are still failing to make adequate energy investments. While that’s not good news, it does present opportunities for investors.

“I think investors here have been given an unbelievable opportunity to potentially add to or establish some energy positions before what I think is going to be a very difficult winter,” he told the Investing News Network.

Rozencwajg emphasized that although the Russia-Ukraine war has thrown energy security into focus, especially in Europe, it’s an issue that has been building over the past decade due to a serious lack of investment in supply.

“The world is really worried about demand, the world is really worried about a looming recession — potentially even more than that, potentially even a real dislocation,” he explained during the interview.

“But the truth of the matter is demand is not what’s going to drive this market … the last cycle in 2003 was all about demand, and now it’s all about supply. Until we fix that, we’re not going to see any change in this problem.”

Looking specifically at oil, Rozencwajg said that the fundamentals paint a bullish picture. When it comes to natural gas, the situation is more complicated given that Europe has been able to replenish its supply ahead of the winter. However, he pointed out that inventories were refilled partially by a 20 percent shutdown in industrial capacity, and partially by countries like Germany burning coal and wood to save natural gas. Russian supply also helped before it was turned off.

“Maybe weather saves you for awhile, maybe you get another slug out of the (Strategic Petroleum Reserve), but these aren’t long-term solutions to the problems, and they should be used as buying opportunities by investors,” he said.

Rozencwajg also spoke about uranium, which he said is benefiting from increasingly positive sentiment.

“The fundamentals look really good today, but what’s going to drive the stocks I think is how investors think about the uranium industry, (the) nuclear power business. And that’s stating to get better and better,” he said.

Watch the interview above for more from Rozencwajg on overall energy market.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.