The Fuse

Oil and the Economy

Economics

Permania Isn’t a Panacea for the Long Term

With so much focus on OPEC cuts and shale growth as of late, declines at existing fields and demand increases from low prices mean that a supply gap will eventually form, even if the rosiest scenario pans out in the Permian. Read More

Economics

Is the Trading World Ripe for Consolidation?

Big merchant traders like Vitol, Trafigura, and Glencore are expected to aggressively explore opportunities to grow in order to diversify their asset and customer bases and mitigate risk. Read More

Economics

Hedging Provides Lifeline to Shale Producers Ahead of OPEC Uncertainty

Small independent shale producers are dealing with a the possibility of another oil price plunge with aggressive hedging, a development that should allow output to grow. Read More

Economics

Shale CEOs Woo Investors as Market Outlook Brightens

Even though a large amount of shale production is hedged for this year, the industry is still vulnerable to cost inflation, access to capital markets and investment banks, and fluctuations in the oil price. Read More

Economics

Peak Demand Would Not Crash the Oil Industry

If oil demand were to peak, the industry would likely see a good bit of consolidation, but the situation would not bring about a collapse. Read More

Economics

New Shetland Islands Oil Discovery to Revive Production in UK Waters?

Production in UK waters has struggled to compete against cheap oil in the Middle East, lower risk and short-cycle U.S. shale, and even expensive offshore oil fields in relatively less explored places like South America, West Africa or the Eastern Mediterranean. Read More

Economics

Hedging Provides Lifeline to Shale Producers Ahead of OPEC Uncertainty

Small independent shale producers are dealing with a the possibility of another oil price plunge with aggressive hedging, a development that should allow output to grow. Read More

Economics

Shale CEOs Woo Investors as Market Outlook Brightens

Even though a large amount of shale production is hedged for this year, the industry is still vulnerable to cost inflation, access to capital markets and investment banks, and fluctuations in the oil price. Read More

Economics

The Oil Market’s March Madness

Despite shale’s resurgence, there are questions about how healthy the U.S. E&P sector is in light of higher price levels since November of last year. Read More

Economics

CERAWeek: A Short List of Contradictions

Although the world is still in the midst of a seemingly perpetual glut, does a supply gap loom? Is peak oil demand imminent? Why is OPEC praising shale and meeting with hedge funds? Read More

Economics

U.S. Oil Sector Back from ‘Brink of Extinction,' Total Boosts Investment

The U.S. oil and gas sector is very upbeat with prices above $50 per barrel, but one CEO warns that the industry must manage its growth or the market could collapse again. Read More

Economics

IEA: Get Ready for a Price Spike

Despite continued rapid growth in U.S. shale, the global oil market could see price spikes and increased volatility at the beginning of next decade. Read More