This Prediction Could Be Bad News for Devon Energy
According to Fatih Birol, the executive director of the International Energy Agency (IEA), demand for fossil fuels will peak by the end of this decade. While the IEA's leader expects oil consumption to continue growing over the next few years, it will hit its all-time high right before 2030 and start declining. Driving that view is the accelerating adoption of electric vehicles (EV), which will eventually cool off oil demand.
That outlook suggests trouble for oil stocks like Devon Energy (NYSE: DVN) could be ahead. Here's why and what the company could do about it.
Devon Energy has invested heavily to build a large-scale oil and gas producer. The company owns drilling rights across five top U.S. resource plays, led by its position in the Delaware Basin. It has enough drilling inventory to continue its current activity pace for the next 12 years. However, with tighter well spacing and continued appraisal, it could drill at the current rate for more than 20 years.
Source Fool.com
