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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
GOM Partially Offsets Onshore Decline
“World Oil” reports that when oil prices started falling in late 2014, so did the onshore oil rig count in the Lower 48. From October 2014, to April of this year, the number of rigs looking for oil dropped from 1,876 to 412, a 78% decrease. Predictably, oil production is dropping as well. In 2015… Read More
