Interesting 7 minute video interview with 30+ yr energy analyst Mike Rothman (Cornerstone Analytics founder), discussing impact of crumbling Venezuelan production capacity ("unintended supply loss, and worst is not over, yet, not even close") and (at about minute 4) how WS is still overlooking the significance of the erasure of 340 million bbl overhang since Jan 2017 ("biggest wipeout of excess since 1971") and WS' excessive focus on increased shale production ("not the right story").
https://www.bnnbloomberg.ca/commodities ... cs~1392528
Venezuela and Global Supply Balance
Re: Venezuela and Global Supply Balance
Mike Rothman is super sharp and he is a "visionary". Unlike the "Wall Street Gang" that seems to always be behind the curve, Mike is way out front. YOU SHOULD ALL WATCH THE SHORT VIDEO AT THE LINK ABOVE AND LET WHAT MIKE IS SAYING SINK IN.
I made a presentation in Dallas on May 7 to 150+ broker/dealers from all over the country. Half of them think that the U.S. is energy independent because of all the hype about shale oil. We still produce only about 60% of the oil we consume in the United States. "Energy Independence" is another myth that will never be achieved.
If Venezuelan oil production drops another million barrels per day (~50% chance), we will see $100/bbl WTI this year.
I made a presentation in Dallas on May 7 to 150+ broker/dealers from all over the country. Half of them think that the U.S. is energy independent because of all the hype about shale oil. We still produce only about 60% of the oil we consume in the United States. "Energy Independence" is another myth that will never be achieved.
If Venezuelan oil production drops another million barrels per day (~50% chance), we will see $100/bbl WTI this year.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group