Energy 2015 – Five Developments to Watch in the US and Beyond


What does 2015 have in store for the energy industry? Making predictions is always a difficult proposition, and trying to predict the price of crude is a daunting task. As they say, if you are going to forecast, forecast often.
 
But looking back on events and activities this past year gives us some comfort to forecast the trends and “big picture” happenings that we’ll likely see in 2015. So, here are my thoughts on the top five energy industry developments to be aware of next year – regardless of whether the price of crude oil goes up or down:
[Read more…]

Petroleum: A Magnificent Material Much Maligned


The use of petroleum is under attack as never before in today’s society. But contrary to the cries of critics, petroleum and the things people can do with petroleum are a modern miracle and a foundation of modern society.
 
Last year, the Intergovernmental Panel on Climate Change of the United Nations called for the world to move to “near zero emissions” of carbon dioxide by the year 2100. President Obama has threatened to veto the Keystone XL pipeline bill. Activist Bill McKibben has launched a national effort to persuade universities and colleges to divest financial holdings in oil companies. These efforts target the oil industry with the aim of eliminating the societal use of petroleum.
[Read more…]

Despite Cheap Oil, Energy Sector Provides Opportunities

The energy sector has been dominating the headlines due to the dramatic drop in the price of crude oil in the later months of 2014, as global supply currently is exceeding demand. As is often the case in the short term, the market did not necessarily decipher quality, and stocks across the energy value chain were affected. As of February, the energy sector is the cheapest sector in the S&P 500.
[Read more…]

Where the Falling Prices Affect Jobs


At the time of authoring this article, WTI for December 2015 last traded at $52.89 which is – $0.76 from prior settle. Should the futures hold, we are not expecting to rise above $50.00 until September. Along with this, according to a study by Oil & Gas Journal, currently planned capital expenditures for US producers is expected to drop 17% to $571 billion with an expected West Texas intermediate price of $70.00/bbl. However, the timeline to maintain or achieve a return to that pricing differs from company to company and leadership in many organizations may continue to recalculate additional expenditure cuts until pricing stabilization or sustained return to the WTI price which budgets were originally based against. [Read more…]