• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 16 mins Alberta govt to construct another WCS processing refinery
  • 4 mins What Can Bring Oil Down to $20?
  • 14 hours Let's Just Block the Sun, Shall We?
  • 12 mins Venezuela continues to sink in misery
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 1 day Waste-to-Energy Chugging Along
  • 1 day U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 23 hours Sane Take on the Russia-Ukraine Case
  • 1 day What will the future hold for nations dependent on high oil prices.
  • 2 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 1 hour OPEC Cuts Deep to Save Cartel
  • 2 hours $867 billion farm bill passed
  • 2 hours WTO So Set Up Panels To Rule On U.S. Tariff Disputes
  • 22 hours Sleeping Hydrocarbon Giant

Will It Be A Happy New Year For Energy Investors?

It has, to say the least, been an interesting year for energy investors. 2014 started with everything looking rosy. The global recovery was in full swing, the price of oil and gas was fairly stable and climbing, and the “energy revolution” in the U.S. was in full swing. Unconventional drilling (primarily hydraulic fracturing, or fracking) had opened up huge reserves of oil and gas in the U.S. and elsewhere that were just beginning to come on line. Even alternatives were looking good at the start of the year, with solar companies in particular finally beginning to turn potential into profit. By the end of the year, though, everything had changed.

As I pointed out in the very first piece I wrote here, oil prices could not keep going up. The increasing supply was outpacing demand increases, in oil particularly, and economics 101 suggested that a correction would have to come. What neither I nor seemingly anybody else anticipated was how severe that would be. A strong Dollar and evidence of slowing growth in Europe and emerging markets, particularly in China, combined with that supply and demand imbalance to produce what can only be called a collapse in the second half of the year.

Anything even vaguely related to energy went with the oil price. Stocks tumbled, with the small companies with exposure to expensive shale and deepwater plays hit hardest. The question for investors, of course, is how low can we go? There is no logical, chart based support…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News