Could Cuts Now Create Oil Production Supply Reductions Later?

Total global oil production could decline for the next several years in a row as scarce new sources of supply come online.  According to data from Rystad Energy, overall global oil output will fall this year as natural depletion overwhelms all new sources of supply. However, the deficit will only widen in the years ahead due to the dramatic scaling back in spending on new exploration and development.

Statoil says that global capex is set to fall for two years in a row, and is on track to fall for a third year in 2017 as more spending cuts are likely.

Oil, Lithium, and the Global Energy Situation

The energy sector was certainly a bargain in January, but no one really knows where oil will be around Christmas. While we may have already seen the bottom, stock prices are not the bargain they were.  There are other plays. Think electric vehicles and even driverless cars. Find what's undervalued now and get in on some of the games that will dictate glorious future wealth.

The Oil Glut Courtesy of...China?

Ship tracking data from Bloomberg shows that 83 supertankers carrying around 166 million barrels of oil are headed to China, which has stockpiled an impressive 787,000 barrels a day in the first quarter of 2016—the highest stockpiling rate since 2014.

While the world was speculating about oil prices plunging to $20 and $10 per barrel, China was busy stockpiling its reserves.

The chart below shows an increase in imports as crude prices collapsed. Since the beginning of this year, China has imported a record quantity of oil.

More than (Model) 3 Reasons to Talk about Lithium

The unveiling of Tesla’s Model 3 electric car was no less than the lifting of the final curtain on a game-changing energy revolution. In addition, if we follow that revolution to its core, we arrive at lithium—our new gasoline for which the feeding frenzy has only just begun.

Energy Consumption Shift Puts India in the Spotlight

Access to energy sources at low prices will continue to drive the world’s political agenda, as energy is a component as well as an object of national power. The world’s primary energy consumption from commercial sources of energy has grown from approximately 8,600 million tons oil equivalent (mtoe) to 13,000 mtoe from 1995 to 2015 and is forecasted to grow approximately by the same amount to 17,300 mtoe by 2035.

Figure 1: World’s share of commercial energy consumption (1995–2035)

Surprise! Lithium is Expensive

Demand for lithium—the hottest commodity on the planet and the only commodity to show positive price movement in 2015—are poised to continue on its upward trajectory, becoming the world's new gasoline and earning the moniker of "White Petroleum". In addition, the battle for market share in and around this commodity has everyone from major tech players to trend-setting investor gurus vying for a foothold.

Keep Doha Expectations in Check

The weekend meeting between many OPEC and non-OPEC producers has helped spur the recent gains in the price of oil.  We are concerned that market may be getting ahead of itself. 

An Expert Weighs in on $85 Oil...this Year?

After a 50 percent rally in oil prices between February and March, crude has retreated a bit as of late. The upcoming OPEC-Russia meeting in Doha looms over the markets, but few expect the outcome to have any material impact on supply and demand. Global supply still exceeds demand, but there are solid signs that the overhang is finally starting to ease. Storage levels are high, but are expected to come down. 

Here Comes the Sun...Can You Afford It?

The National Renewable Energy Laboratory this week said that rooftop solar panels have the potential to generate nearly 40 percent of electricity in the U.S. However, what about the cost of going solar?

Many people ask when the cost of producing power from solar photovoltaic (PV) panels will be equal to or less than buying from the grid – a point called “grid parity” that could accelerate solar adoption.

Which Companies Will Weather the Oil Price Storm

It is possible that prices may jump again but they will almost certainly stay below US$50 per barrel throughout 2016. Speculation may increase prices but, without any substantive changes in supply-and-demand, any rally will be short-lived — as has happened several times since August 2015. The fundamental changes in the global oil market necessary to solve the current oversupply problem, unfortunately, still seem a long way off.