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Oil Security at Risk
High prices lead to increased investment and production which leads to a glut which results in a price collapse, which in turn gives rise to investment, and subsequently production cuts and price recovery. We can wring our hands in despair, or reconcile ourselves to the boom and bust nature of the energy business, or, alternatively,… Read More
Manassas
Pierre Andurand, chief investment officer of Andurand Capital Management in London, is renowned for having predicted the oil collapse. “World Oil” reports that he is predicting a “multi-year bull run” now that low prices have curbed supply. Andurand sees an oil price of $60-70 this year, and $80 in 2017. He reasons, “Large spending cuts… Read More
Offsetting Depletion
Almost half of Lower 48 crude produced last year came from wells drilled since the start of 2014, according to an article in “Oil Voice”. The good news is that as new horizontal drilling and completion techniques enabled the shale revolution, production from low permeability tight reservoirs increased dramatically. Tight reservoirs which include, but are… Read More
LNG Export Risks
“World Oil” reports that analysis by consulting group, Wood Mackenzie, indicates that U. S. LNG (liquefied natural gas) exports to Europe could be exposed to several risks over the next five years. Some of these are obvious and others less so. An obvious risk is that Russia, in an attempt to preserve gas market share… Read More
Crude Price Expectations
In a recent article in “Oil Voice”, market watcher, Chris Vermeulen offers his take on where oil prices are headed. With the current price flirting with $40 per barrel, the obvious question is whether we are headed for a major recovery, or back toward recent lows near $26. Vermeulen’s answer is based partly on technical… Read More
