Energy

26 October 2015

Banks Not as Brutal to Shale Companies as Expected

October has been billed as a pivotal month in which indebted shale companies would see their credit lines cut, precipitating a faster consolidation in the industry that would sow the seeds of a rebound. October has been billed as a...

20 October 2015

Temper Thoughts of an Oil-filled Future for All

The mere hint of a successful deal over Iran’s nuclear programme is enough to get people excited. In addition, as the country emerges from economic isolation, nowhere is the enthusiasm more keenly felt than in the huge oil firms with...

6 October 2015

Oil Exacerbates Sub-Saharan Africa’s Currency Woes

Since lower oil prices typically result in depreciation of the oil exporters’ currencies, the dramatic plunge of oil prices has severe implications for sub-Saharan Africa. After the global financial crisis, many emerging economies have coped with diminished global growth prospects...

29 September 2015

Not Everyone is Bailing on the Arctic

After billions of dollars invested over several years, Royal Dutch Shell said September 28 it would end oil exploration offshore Alaska after “disappointing” results. However, industry efforts to drill for oil and natural gas in the Arctic are unlikely to...

19 September 2015

Oil Price Volatility as the New Normal?

On September 10 the EIA reported a production decline in the Lower 48—essentially shale production—of 208,000 BOPD. That is a staggeringly enormous number, approximately 10 percent of the estimated global over-supply. Additionally, it was a week-over-week number, which makes it...

17 September 2015

Carbon Trading Initiative Consequences

In recent years, there has been significant movement toward land acquisition in developing countries to establish forestry plantations for offsetting carbon pollution elsewhere in the world. Land grabbing is the common reference to this practice. These carbon-trading initiatives work on...

17 September 2015

Oil Market Fundamentals Will Need Some Magic

The party is over for tight oil.  Despite brash statements by U.S. producers and misleading analysis by Raymond James, low oil prices are killing tight oil companies.  Reports this week from IEA and EIA paint a bleak picture for oil...

8 September 2015

Oil Takes the Path of Least Resistance

As traders, investors and pundits, we all like to think that what we do is akin to a science. We believe that by working harder and being smarter we can give ourselves an edge, that enough research will reveal to...

2 September 2015

Do Oil Sands Have to be Dirty?

After decades of exhaustive attempts to overcome the dirty reputation of oil sands, we finally have an environmentally-friendly and low cost method to tap into these vast resources in the state of Utah—good news both for Mother Nature and all...

2 September 2015

Perhaps Japan’s Abe Should Fire Off Another Arrow?

On 11 August, the Japanese government went along with its plan to revive nuclear energy after the Fukushima disaster by restarting one of the Sendai nuclear power plants. Prime Minister Shinzo Abe insists that Japan cannot thrive without nuclear energy...

1 September 2015

Are the Saudis Killing OPEC?

"If you are the world's leading energy economy, you produce energy, that's what you do." "A government can stay irrational longer than it can stay solvent." "Even in the short term, you're dead, if you commit suicide." "If you are...

25 August 2015

A Potentially New OPEC(ing) Order at the Next Meeting

OPEC next gathers December 4 in Vienna, just over a year since Saudi Oil Minister Ali Al-Naimi announced at the previous OPEC winter meeting the Saudi decision to let the oil market determine oil prices rather than to continue Saudi...

13 August 2015

The Real Price of Oil is Real Low

By the time the yuan had weakened almost 2%, the slide in commodity prices was cited as evidence of the market's concern that China was going to export deflation.  This weighed on the dollar-bloc currencies, and the currencies of other...