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Bear Head LNG Facility
I recently ran across an article in “World Oil” about Bear Head LNG (liquefied natural gas) buying additional land adjoining the site of its proposed facility in Nova Scotia (http://www.worldoil.com/news/2016/3/29/bear-head-lng-buys-additional-land-as-it-expands-proposed-facility ). The article went on to say that original plans were to liquefy 8 mtpa (million tons per annum) of natural gas for export to… 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
Offsetting Depletion
Almost half of Lower 48 crude produced last year came from wells drilled since the start of 2014, according to an article in “Oil Voice”. The good news is that as new horizontal drilling and completion techniques enabled the shale revolution, production from low permeability tight reservoirs increased dramatically. Tight reservoirs which include, but are… Read More
