Category Archives: energy capex

Why a Coming Gap in the Supply of Oil Is Unlikely

Is the oil exploration & production spending supply hole real and will it result in a production gap in a couple of years?

The oil industry and its analysts have begun to focus on how capital spending has declined so much recently that we could find that we do not have enough oil within a couple of years to meet demand.  This “supply hole thesis” has been used by Saudi to justify a production cut in order to signal producers to allocate more money into the sector and it has been what has been used by stuggling producers to hang on in the hope that the supply hole will drive prices back up to get them back to financial health.

Article by Amy Myers Jaffe (@AmyJaffeenergy) is executive director of energy and sustainability at the University of California, Davis, Graduate School of Management :   Why a Coming Gap in the Supply of Oil Is Unlikely

IEA Thinks Oil Industry Could Cut Capex 3 Years In A Row | Seeking Alpha

IEA said that investments in oil and gas are set to drop by 24% this year to $450 billion higher than the 17% decline estimated in February. E&P companies continue to struggle as low oil prices make credit increasingly costly. This has led to oil discoveries hitting the lowest level since 1947.

Source: IEA Thinks Oil Industry Could Cut Capex 3 Years In A Row – Oil Markets Daily – The United States Oil ETF, LP (NYSEARCA:USO) | Seeking Alpha