Peak Oil Mirage Is Evaporating as U.S Production to Last Generations
by
David Bernal
David Bernal, Senior Solutions Manager for Allegro Development: "There seems to be no end to the amount of oil and gas embedded in the Earth’s crust and no end to humanity’s ingenuity in finding ways to extract it."
Whether you blame technology, politics, softening demand or a mix of all three, the recent oil price plunge is testament to the dynamic nature of energy markets and the huge risks that emerge in a period of profound Volatility. The most important question for energy market participants however, is how they can minimise our exposure?
Technology in the form of hydraulic fracturing (fracking) and horizontal drilling has arguably made America the world’s pre-eminent oil producer, pulling up to 4m barrels a day from sources that were once called “unconventional”. So much oil is sloshing around that Congress has taken its first tentative steps toward removal of the crude export ban by allowing exports of certain condensates. Full-on exports of crude oil or natural gas haven’t happened yet, but exports of liquefied natural gas (LNG) will start this year. Increased trade in LNG will create a more global gas market, undermining Russia’s pipeline monopoly in Europe.
Softening demand for oil, especially from China, Japan and the euro area is another factor -- along with unexpected resilience in supply from countries in the midst of conflict like Libya and Iraq.
Following OPEC’s decision to not decrease supply, the imbalance between oversupply and under-demand has driven crude to sub $50 a barrel. While consumers may see these developments as superficially positive, so much rapid unforeseeable change, always creates worry in the markets. There is justifiable concern about how volatility will impact the flow of goods across supply chains, weaken certain shale investments and irritate commodity prices.
Companies transacting in crude oil, liquid natural gas and refined products are just beginning to understand how the current period of transformation will affect how they source, supply and move assets. Some of the variables are known and ongoing, but the last six months have shown that there are always ‘unknown unknowns’ which can dramatically re-shape the market.
According to Citi’s "Energy 2020 Out of America" report, U.S. production surpluses are expected to continue for at least two generations, despite declining crude prices. The impact of such a fundamental change to world oil production and consumption will continue to be felt for decades.
By contrast, EU imports of primary energy way exceed exports because of the shortfall between production and consumption. This continues to cause dependency on countries outside the EU.
There seems to be no end to the amount of oil and gas embedded in the Earth’s crust and no end to humanity’s ingenuity in finding ways to extract it. The whole concept of “peak oil” may well disappear. “Peak technology”, meanwhile, also looks to be a long way off. By investing today in robust trading and Risk Management software, energy market participants can navigate market turmoil with confidence and a healthy dose of automation.
Whether you blame technology, politics, softening demand or a mix of all three, the recent oil price plunge is testament to the dynamic nature of energy markets and the huge risks that emerge in a period of profound Volatility. The most important question for energy market participants however, is how they can minimise our exposure?
Technology in the form of hydraulic fracturing (fracking) and horizontal drilling has arguably made America the world’s pre-eminent oil producer, pulling up to 4m barrels a day from sources that were once called “unconventional”. So much oil is sloshing around that Congress has taken its first tentative steps toward removal of the crude export ban by allowing exports of certain condensates. Full-on exports of crude oil or natural gas haven’t happened yet, but exports of liquefied natural gas (LNG) will start this year. Increased trade in LNG will create a more global gas market, undermining Russia’s pipeline monopoly in Europe.
Softening demand for oil, especially from China, Japan and the euro area is another factor -- along with unexpected resilience in supply from countries in the midst of conflict like Libya and Iraq.
Following OPEC’s decision to not decrease supply, the imbalance between oversupply and under-demand has driven crude to sub $50 a barrel. While consumers may see these developments as superficially positive, so much rapid unforeseeable change, always creates worry in the markets. There is justifiable concern about how volatility will impact the flow of goods across supply chains, weaken certain shale investments and irritate commodity prices.
Companies transacting in crude oil, liquid natural gas and refined products are just beginning to understand how the current period of transformation will affect how they source, supply and move assets. Some of the variables are known and ongoing, but the last six months have shown that there are always ‘unknown unknowns’ which can dramatically re-shape the market.
According to Citi’s "Energy 2020 Out of America" report, U.S. production surpluses are expected to continue for at least two generations, despite declining crude prices. The impact of such a fundamental change to world oil production and consumption will continue to be felt for decades.
By contrast, EU imports of primary energy way exceed exports because of the shortfall between production and consumption. This continues to cause dependency on countries outside the EU.
There seems to be no end to the amount of oil and gas embedded in the Earth’s crust and no end to humanity’s ingenuity in finding ways to extract it. The whole concept of “peak oil” may well disappear. “Peak technology”, meanwhile, also looks to be a long way off. By investing today in robust trading and Risk Management software, energy market participants can navigate market turmoil with confidence and a healthy dose of automation.
Interactive Brokers Settles Nasdaq Charges, Agrees to $475,000 Fine
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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