• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 17 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Editorial Dept

Editorial Dept

More Info

Premium Content

Will 2022 Be A Good Year For Oil?

After a decade of disappointment, 2021 was the year when energy finally bounced back and outperformed the broader market. Crude, recovering from the shock of the pandemic’s early days and massive oversupply, spent most of the year tracking upwards, bringing energy stocks along for the ride. XLE, long the poor relation amongst the sector ETFs, was a top performer, and even the moribund big oil stocks and battered shale producers soared.

So, what are the chances of a repeat in 2022?

Unfortunately, I would say they are slim, at least in the early part of the year.

As always, the price of oil will be the deciding factor in the performance of the sector and, despite a good start to the year in that regard, it is hard to be particularly bullish for the foreseeable future. The boost over the last few days has come mainly from the disruption in Kazakhstan threatening output there and despite, not because of, economic conditions and other supply factors.

That situation is significant, of course, but I find it hard to believe that the disruption will last. Kazakhstan is very dependent on oil revenue and whoever ends up in power, it will be important to turn the cash faucet back on as soon as possible. The importance of oil revenue to smaller producing countries is why these localized crises rarely have a lasting impact. If a country’s output is big enough to move the price of oil when it is threatened, then it is big enough to make restoring it a…

Leave a comment
  • Landwer on January 07 2022 said:
    Market’s getting hit by delivery systems, workers, which means price ranging upward plus shales outlook at lower prices and poor rock dynamics will necessitate increased domestic conventional drilling. Thx

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News