Our Blog
Risk to Independents Exaggerated
A recent article in “World Oil” cites two studies by consulting firm, Wood Mackenzie, which concludes that the independent energy segment of the industry is not in imminent danger. Many industry commentators had predicted dire consequences for small oil and gas producers as a result of this Fall’s recalculation of reserves used in Reserve Based… Read More
No $100 Oil until 2020
“World Oil” reports that Nobuo Tanaka, former head of the International Energy Agency (IEA), predicts that oil prices will not reach $100 per barrel until 2020 to 2025. He anticipates depressed prices until U. S. shale production starts to decline. This, in conjunction with increasing demand from Asia and Africa, will enable prices to eventually… Read More
Demise of LNG?
We tend to think of oil, natural gas, liquefied natural gas (LNG), coal and nuclear energy as separate markets. Domestically, and in the short term, this is true. However, globally, and in the long term, these are all interrelated. Economists correctly contend that when a commodity’s price changes, it affects the prices of compliments and… Read More
Murphy Pounds Sand
The recent oil price collapse resulted in massive reductions in capital spending, headcount and rig counts across the entire energy sector. Many industry observers predicted that oil production would decrease precipitously as a result. However, as “World Oil” reveals in a recent article, actual crude output has remained relatively stable. In fact, it is only… Read More
Low Prices = Reduced Investment
A recent article in “World Oil” cites analysis by the International Energy Agency (IEA) which contends that a period of sustained low oil prices will result in reduced exploration and production investment. The underlying assumption is that prices reflect a balance between supply and demand. Increasing prices imply a need for more supply which requires… Read More
