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Rigless Gas Producers
“World Oil” reports that the number of drilling rigs looking for gas has dropped to the lowest level in almost three decades. Not since 1987 has the gas rig count been so low. In 2008 it was more than 1,600; now it is 88. Southwest Energy, the third largest domestic gas producer, has stopped drilling… Read More
Fooled by the “Freeze”
“World Oil” reports that Ole Hansen, the head of commodity trading at Saxo Bank A/S, sees the current oil market as being distracted by the sideshow that is a possible crude production “freeze”, and missing the main attraction which is U. S. drilling and production. Oil traders seem to be bidding up the price of… Read More
Oil Demand Alive and Well
Industry observers have focused on oil production and oversupply since late 2015, but not as much attention has been devoted to demand recently. Admittedly, a downturn in manufacturing and financial turmoil dampened demand in the developed economies. Annual demand growth did fall from over 2% to 1.2% in the fourth quarter of last year. A… Read More
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
