To make a killing in the oil and gas industry today, you need to understand its cycles.
This new era of capital discipline in the oil patch – which we’re still in today – is called Shale 3.0.
The beauty of Shale 3.0 is this: Not only are companies acting in their shareholders’ best interests by directly returning capital, but in doing so, the companies are reducing global supply and therefore improving their future cash flows.
For shareholders, that’s a win-win. And it means that right now is a great time to be bullish on oil and gas.
This post originally appeared at DailyWealth.