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Shrinking Surplus
Many industry observers, including myself, were skeptical when oil prices began their recent modest rise. It appeared that the tentative price recovery was driven by wishful thinking on the part of speculators rather than market fundamentals. Admittedly, domestic production was falling, but offset by OPEC increases, thereby doing little to affect the global oil glut… Read More
New Bankruptcies
According to a recent article in “World Oil”, it appears that oil’s recent surge past $45 per barrel is too little, too late for many oil and gas companies. Since the start of 2015, 130 North American operators and service companies have filed for bankruptcy owing almost $44 billion. In addition to these, Chaparral Energy,… Read More
Gas Rally at Risk
According to a recent article in “World Oil”, money managers saw the all-time high level of natural gas supplies as the high water mark. Encouraged by falling pipeline shipments and rig counts, increasing demand via exports and fuel switching from coal, and meteorologists’ predictions of a hot summer, speculators jumped on the gas band wagon. … Read More
EOG’s Edge
Reflecting back on $100 oil is reminiscent of Bruce Springstein’s song, “Glory Days”. However, for EOG Resources, a more appropriate theme might be the line from Carly Simon “These are the good old days”. In a recent article in “Rigzone”, EOG Chairman and CEO, Bill Thomas, contends that his company can post strong returns at… Read More
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
