I have had many discussions with colleagues on this,on the surface it is true, but everyone in the oil and gas sector realizes this downturn in oil prices are due to politics and not actual supply and demand. You don't just wake up one day and all of the sudden there is an oil glut! This was negotiated with the Saudi's to drop prices to induce pressure on Russia, period! Nothing to do with amount of oil in the market today!
Additionally, Oil is not the only play in the U.S., natural gas is abundant in the fracking industry and should be what people are talking about, with 17 new LNG export terminals being built in the U.S. today.
10/16/2014 @ 10:40AM 3,149 views
"At the same time that production in Shale gas has surged, demand is rising and likely to keep rising as a clutch of LNG export terminals come online in the Gulf and Eastern Seaboard. Natural gas which prices traditionally track with oil prices, will garner higher resale values than oil in the future.
U.S. exports of LNG is expected to explode in the near term which is directly attributed to domestic shale field production activities and the export facilities under construction today."
Good topic for discussion! eh~!
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