We will be sending out the replay link this afternoon to all EPG members.
Please post any questions or comments here.
We will be setting up "EPG Members Only" webinars at the beginning of each month. The will be on the first business day of each months unless I am travelling.
This morning's webinar replay - Feb 1
This morning's webinar replay - Feb 1
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: This morning's webinar replay - Feb 1
Re: What will Biden's recent moves against the oil & gas industry do?
January 29 (Reuters) - Even as the U.S. economy makes the switch over coming decades to renewable energy like wind and solar, the nation needs to ensure its fossil fuel industry stays healthy, a top U.S. central banker said on Friday. "The challenge for the country will be to transition, but it's going to also be critical for the country that you have a healthy oil and gas business," Dallas Federal Reserve President Robert Kaplan told the North Dallas Chamber of Commerce Energy Forum. Even under the most aggressive forecasts for growth in renewable energy, he said, the world will still need energy from oil and gas for decades to come. "I am convinced there will be substantial jobs and plenty of GDP growth in the renewable business," Kaplan said. "You are going to see substantial investment because the alternative side doesn't have any trouble attracting capital.... The worry will be, as we transition, will the traditional business be able to get enough capital and retain enough capital to drill enough to meet demand." And if it doesn't, he suggests, that could lead to hardship for the most vulnerable. "If you get outages or spikes or we have shortages, that's going to be very challenging to manage, not just for businesses, but I'm also thinking of consumers, individuals, and it will hurt the people who are most at risk," he said. The oil industry contributes about 8% of economic output in the state of Texas, Kaplan noted. The Fed in the last year or two has paid increasing attention to the implications of climate change, and to the nation's transition to green energy, for economic growth and stability of the nation's financial system.
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With so much emotion and outright hatred for the Republicans, it is nearly impossible for Biden and the Far Left wing of his party to have a rational discussion about a national energy plan. If there is a permanent ban on oil & gas exploration on Federal lands, the U.S. will soon be on a path back to dependence on OPEC+ (including Russia) for the energy supply that impacts our standard of living. This is a national security risk that must be considered.
January 29 (Reuters) - Even as the U.S. economy makes the switch over coming decades to renewable energy like wind and solar, the nation needs to ensure its fossil fuel industry stays healthy, a top U.S. central banker said on Friday. "The challenge for the country will be to transition, but it's going to also be critical for the country that you have a healthy oil and gas business," Dallas Federal Reserve President Robert Kaplan told the North Dallas Chamber of Commerce Energy Forum. Even under the most aggressive forecasts for growth in renewable energy, he said, the world will still need energy from oil and gas for decades to come. "I am convinced there will be substantial jobs and plenty of GDP growth in the renewable business," Kaplan said. "You are going to see substantial investment because the alternative side doesn't have any trouble attracting capital.... The worry will be, as we transition, will the traditional business be able to get enough capital and retain enough capital to drill enough to meet demand." And if it doesn't, he suggests, that could lead to hardship for the most vulnerable. "If you get outages or spikes or we have shortages, that's going to be very challenging to manage, not just for businesses, but I'm also thinking of consumers, individuals, and it will hurt the people who are most at risk," he said. The oil industry contributes about 8% of economic output in the state of Texas, Kaplan noted. The Fed in the last year or two has paid increasing attention to the implications of climate change, and to the nation's transition to green energy, for economic growth and stability of the nation's financial system.
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With so much emotion and outright hatred for the Republicans, it is nearly impossible for Biden and the Far Left wing of his party to have a rational discussion about a national energy plan. If there is a permanent ban on oil & gas exploration on Federal lands, the U.S. will soon be on a path back to dependence on OPEC+ (including Russia) for the energy supply that impacts our standard of living. This is a national security risk that must be considered.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: This morning's webinar replay - Feb 1
Per Oil & Gas Journal on February 1, 2021:
"Observed global oil stocks (inventories) fell by 2.58 million bbls per day in the 4th quarter of 2020 after preliminary data showed hefty draw downs toward year end. In November, OECD industry stocks fell for a 4th consecutive month. A monthly decline of 23.6 million barrels left inventories at 3,108 million barrels, 166.7 million barrels above their 5-year average. Refined products led the fall, with OECD industry crude stocks only 48.9 million barrels below the May peak."
As you can see on slide 14 of today's webinar slides, since November there has a significant decline in U.S. crude oil inventories and refined product inventories are also declining. This is what is supporting the Goldman Sachs' bullish oil price forecast of $65/bbl Brent by July, 2020.
"Observed global oil stocks (inventories) fell by 2.58 million bbls per day in the 4th quarter of 2020 after preliminary data showed hefty draw downs toward year end. In November, OECD industry stocks fell for a 4th consecutive month. A monthly decline of 23.6 million barrels left inventories at 3,108 million barrels, 166.7 million barrels above their 5-year average. Refined products led the fall, with OECD industry crude stocks only 48.9 million barrels below the May peak."
As you can see on slide 14 of today's webinar slides, since November there has a significant decline in U.S. crude oil inventories and refined product inventories are also declining. This is what is supporting the Goldman Sachs' bullish oil price forecast of $65/bbl Brent by July, 2020.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group