Energy Blog
Price Abdulaziz bin Salman’s comments this week mean that Russia’s interests are our interests and the West’s problems are not our problems. Welcome to the Second Cold War!
The level of oil investment over the last several years has been exactly right based on market price and investor expectations. The oil business is not a service industry nor is it part of the Consumer Protection Agency.
This is going to fundamentally re-structure the economy & probably the world order. Buckle up. It’s going to be a wild ride!
We are now experiencing the fourth oil shock. The removal of 5 mmb/d of Russian crude oil and condensate exports would be the biggest structural change to the oil market since the Iran-Iraq war in 1980.
The period of low energy prices is over.
Markets are not nearly as suggestible as most analysts and investors. They are cheap and hate to over-pay.
The rally was over a few weeks ago but until late last week, there was hope it might resume its upward momentum. That seems unlikely for now.
The idea that gas price might soar this winter because of lower production reflected a profound misunderstanding of how natural gas markets work. It was natural gas amateur hour.
Many of the wells that were turned off were not shale wells and they’ll never be turned on again.
It doesn’t matter whether wells are newly drilled and completed or DUCs—there are simply too few wells being added to maintain present levels of production.
The market knows that investment is needed immediately. The consequences of ignoring what the market knows may be economically disastrous for a struggling world economy.
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