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Quo Vadis Oil?
Unanimity is rare in the oil industry, but there seems to be a prevailing consensus. An article by Alahadl A. Hussein on “Oil Voice” cites a recent survey conducted by the “Wall Street Journal”. The survey included input from thirteen investment banks and most see the world largely as they did back in March when… Read More
Wages and Oil Prices
Gail Tverberg, in a very interesting article entitled “U. S. Oil Production and Future Oil Prices” posted on oilvoice.com, contends that consumers are the ultimate driver of oil demand. This relatively long article contains some excellent graphs which help illustrate her point. The first part of the article defines the various components of what we… Read More
Hedge Funds Bullish on Oil
“World Oil” reports that hedge funds are hoping that the shale boom will go bust. Speculators are betting that falling domestic production and rising demand will reduce the world-wide crude oil oversupply and send prices higher. That inventories are at the highest level since 1929 does not seem to temper their enthusiasm for a bull… Read More
Natural Gas Price Recovery
Keith Schoefer’s recent post on “OilVoice.com” asks; “Is There A Perfect Storm Coming for Natural Gas Prices?”. While this article is written from a stock analyst’s perspective, the analysis of gas markets and prices is relevant for all of us who follow the energy industry. Schoefer points out that while gas market fundamentals are currently… Read More
$45 Trip Wire?
According to a recent article in “World Oil”, the good news is that oil prices have rebounded somewhat. The bad news is that a sustained price of $45 per barrel could provide the incentive that shale operators need to unleash the “fraclog”. The fraclog is the inventory of drilled but uncompleted wells (DUC’s) that could… Read More
