Our Blog
Future Shock?
Some crude traders fear that we might be facing a long term oil supply shortfall given current trends. Back in November, OPEC and 11 other producing nations announced plans to cutback on production in an effort to shrink the global glut and increase prices. In response, prices jumped 20% and many producers hedged future production… Read More
4Q16 Hedging Flurry
“Rigzone” reports that consulting firm, Wood Mackenzie, warns that hedging activity could exacerbate the global oil glut. Back in November of 2016, OPEC and 11 non-OPEC producers all announced their intention to cut back on oil production in order to reduce the world-wide surplus and improve prices. This drove oil prices up and many U.… Read More
LNG Success
During the shale revolution operators were finding gas faster than traditional domestic markets could absorb it. Consequently, some investors saw LNG (Liquefied Natural Gas) exports as a lucrative opportunity. Liquefaction, transportation and regasification facilities are capital intensive and require long lead times for construction. While a number of projects are currently underway in the U.… Read More
Oil Deficit by Mid-Year?
The global oil glut has been with us for so long that we are starting to assume that it is part of the long-term energy landscape. This oversupply has hung like the Sword of Damocles over oil markets and is a strategic threat to any sustained improvement in oil prices. However, “Rigzone” reports that no… Read More
Downside for Natural Gas
Recently several industry observers have expressed optimism for natural gas prices. Currently, prices are stable and there are potential upsides. Demand for gas for power generation is strong and growing. LNG exports, as well as gas sales to Mexico via pipelines, continue to grow. An unseasonably hot summer could be an added bonus. On the… Read More
