S&P/ASX 200 Index (ASX: XJO) oil stocks have been said to only have shorter-term time horizons. Or so-called 'stranded assets'.
That's because the big oil and gas shares produce energy sources that pump a fair bit of carbon into the air. And with much of the world committed to achieving net zero emissions by 2050 (on paper, at least), the rise of EVs has led to speculation that the end of the oil era is nigh.
But that speculation increasingly appears to be seen only via green-tinted glasses. With the world likely to need oil for many years to come, ASX 200 oil stocks like Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) should find plenty of demand for their product into the next decade… and beyond.
Even United States President Joe Biden, lauded as green energy advocate and environmental champion, has admitted as much.
What did Biden say about energy demand?
In the president's State of the Union Address, delivered on Tuesday, Biden gave a nod to the lengthy demand outlook for oil. His comments, as Bloomberg reported, were off the cuff and not included in his written prepared remarks.
Despite advocating for EVs and sustainable energy sources – and slamming oil companies for rewarding management and shareholders rather than bringing down prices – Biden said, "We're still going to need oil and gas for a while."
While not specifically referring to ASX 200 oil stocks, that outlook will go some way to dispelling the notion that they're stranded assets.
Biden doubled down on his remarks, adding, "We're going to need oil for at least another decade … and beyond that."
How have these ASX 200 oil stocks been performing?
The Santos share price soared into March 2022 amid fast-rising crude oil prices. As you can see in the chart below, the ASX 200 oil stock has pulled back from those highs and is down 8% over the past 12 months.
The Woodside share price also rocketed into March 2022, and it has continued to outperform. Woodside shares are up 33% since this time last year.
