Gear energy update Nov
Posted: Mon Dec 19, 2022 3:06 pm
https://gearenergy.com/wp-content/uploa ... ember2.pdf
Reading through all the third party analysis on what to predict for
oil prices into 2023 does not make it easy to come to a simple
conclusion. The pro-energy price strength factors are all quite
convincing; chronic under-investment leading to low growth,
Russian sanctions, anomalously low global inventories and
potential China demand growth. However, the con-energy price
factors are also tangible; the main theme being fear of a potential
deep global recession, further lockdowns in China, and the
possible conclusion of the Russian invasion of Ukraine.
Back in early November Gear released its 2023 capital budget
based on a WTI oil price estimate of US $80 per barrel.
Depending on the day, or the week, or the hour since then, that
estimated oil price has ranged between too conservative to too
aggressive. The only thing I am certain of is that 2023 oil prices
will not match the current strip and that the best thing we can do is
remain attentive to all the available information and be prepared
to act quickly.
Reading through all the third party analysis on what to predict for
oil prices into 2023 does not make it easy to come to a simple
conclusion. The pro-energy price strength factors are all quite
convincing; chronic under-investment leading to low growth,
Russian sanctions, anomalously low global inventories and
potential China demand growth. However, the con-energy price
factors are also tangible; the main theme being fear of a potential
deep global recession, further lockdowns in China, and the
possible conclusion of the Russian invasion of Ukraine.
Back in early November Gear released its 2023 capital budget
based on a WTI oil price estimate of US $80 per barrel.
Depending on the day, or the week, or the hour since then, that
estimated oil price has ranged between too conservative to too
aggressive. The only thing I am certain of is that 2023 oil prices
will not match the current strip and that the best thing we can do is
remain attentive to all the available information and be prepared
to act quickly.