OPEC's 2040 Oil Price Estimate is Sky High, but also Bearish

OPEC says that $10 trillion worth of investment will need to flow into oil and gas through 2040 in order to meet the world’s energy needs.  The OPEC published its World Oil Outlook 2015 (WOO) in late December, which struck a much more pessimistic note on the state of oil markets than in the past.

A Future with a Low-Carbon Asia

As the world celebrates the Paris agreement, after 20 years of fraught meetings, its significance for the future development pathways of the emerging economies of Asia cannot be underestimated. Critically, it will increase the flow of additional public and private finance for vulnerable countries for both low carbon and climate resilient investments. Low-carbon green growth pathways toward a possible 1.5°C limit and 5-year reviews will be played out through the Intended Nationally Determined Contributions (INDCs).

Paris climate agreement

To Understand Britains Coal Industry is to Understand Britain

The reign of King Coal is a story that is central to fully understanding modern Britain. Coal powered the industrial revolution.  It employed over a million miners at the industry’s height.  Coal shaped and sustained communities across the country and has played a key role in the UK’s political economy. With the closure of Kellingley colliery, the country’s last deep mine, in December 2015, a defining chapter in British history comes to an end.

Reforming Your Way Out of an Oil Price Crush

It has been a turbulent year for oil. Prices were strong in summer 2014, before plummeting in the second half of that year. After a modest stabilisation in early 2015, they dropped even further and are now more than two thirds lower than in summer 2014 – as the graph below shows. It’s bad news for oil producers but is forcing some, at least, to reform their economies as a result.

Reindeer or Oil: Santa Decides

Every year around the world, hundreds of millions of children wait anxiously for Santa Claus to arrive and bring presents and good cheer. But what if Santa never came? What if this year the reindeer all fall ill, perhaps due to Crazy Reindeer disease (the analog to Mad Cow) and Santa is forced to cancel Christmas? The result would be devastating.

Is the Syrian Mess Solvable?

Business is business, so why not buy oil from ISIS. The Russians claim the Turks are doing it, and in all likelihood, even Assad is buying it. No one can fight a war without oil, according to Robert Bensh, partner and managing director of Pelicourt LLC oil and gas company. However, while the politically unhinged are coming out the woodwork, the more important aspects of this story remain elusive to the public.

Not Inconsequential Strippers Also Under Pressure

With OPEC breaking down and any kind of coordination among its members on price cuts looking increasingly unlikely, it now appears that oil prices could remain below $50 a barrel for a year or more. As producers confront this unpleasant reality, some will finally start to significantly curtail or even shut down operations. That is going to severely hurt an all but invisible group; strippers in the United States.

Stranded, but not Forgotten

Whatever the outcome of the climate talks in Paris, one thing is certain: climate change will result in assets becoming “stranded”. In addition, despite the claims of various naysayers, investors should be prepared.

OPEC's Demise, Still Exaggerated

Many observers conclude OPEC is dead.  Oh, there have been claims of its demise before, but after the oil cartel failed to provide a quota (output goal) in last week's statement, the claim has new life.