I've just come out of an Oil and Gas conference in London with a lot of experts present. It's not looking good, with a 'supply crunch' in the energy sector coming up - all the finance for big projects (deep-sea offshore, pipelines etc.) has evaporated, so the black stuff will increasingly stay in the ground, leading to an artificial peak-oil that will push prices back up in the medium term (next 5 years). The prospects for some economies is dire, with a few oil countries requiring over US80$ per barrel prices to balance their books. Venezuela needs over US$100 prices. Oh dear.
Wednesday, February 11, 2009