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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
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
