Crazy Times In The Oil Patch

Crazy Times In The Oil Patch

The energy market has entered a new phase in its ongoing restructuring (see IF 3325). Three areas of change are driving this most recent phase: More Sources/Advancing Capabilities, which means discovery and exploitation of more and more fields; Cyclical/Secular Force, which means slowing economies and the emergence of alternative energy supplies; and Geo-politics, which means the shifting alliances and partnerships that seek something in addition to economic returns. More Sources in the world are destabilizing market pricing; Secular Forces are challenging hydrocarbons for the high moral ground (and, lately, for pricing as well); and Geo-politics is consolidating energy markets into a larger context: establishing long-term coalitions of consumers and producers and building out infrastructure to support a market stretching across the whole of Eurasia.

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