Well, we are in historic times with pandemics, countries printing money, and inflation. If that does not make your head hurt, commodities pricing will. The important deal with OPEC + and the UAE is an important discussion point for prices, but the experts give mixed signals. The world is no longer in a supply and demand fundamentals for commodity pricing with oil and gas. The “Greener” movement, as I call it, has depleted capital investments into oil and gas and is a factor left out in today’s discussions. The US Shale oil is not a simple flip the switch and rigs come back online from cold storage. While many E&P and OFS companies are hiring, there are still a huge number of rigs required that will take years to bring back online.
The King Operating research team is studying the world production numbers and with the world movement to renewables. We are finding surprising trends and they are pointing to increased use of fossil fuels from oil and gas, coal, and rare earth minerals. We will cover that in other research articles coming out soon.
The experts are not looking at the new world order of commodity pricing. This will lead to confusion in the marketplace. Just this morning on Bloomberg there are two opposing viewpoints included below in the videos.
Today on Bloomberg.
Mike McGlone – Bloomberg Intelligence – says that we will head back to $50 oil as it is a supply/demand issue.
Ed Morse Citigroup – Global Head of Commodities Research – says that there are more forces at play and the oil prices are going up.
The Bottom Line:
Our data is in line with Ed Morse from Citygroup, with even higher prices to the “Greener” movement. The world is afraid of the US Shale Giant being awakened again. The problem is that it will take a gigantic club to awake the Giant. The lack of capital in the major oil companies places an opportunity for the private companies to slide under the ESG and climate advocate radar. For King Operating this is again more signals that we and other independents are on the right track.
I would like to hear from you about your thoughts on the current market. Please reach out to me at the King Operating offices for a discussion on market information and what our research team sees on the investment horizon.
Look forward to talking with you soon.
Jay R. Young, CEO, King Operating
For Media, Press, or Interview information, please contact:
Stu Turley, CEO, and President, Sandstone Group
Phone (972) – 984 – 7403 x 3 Email – Stuart@sandstonecg.com
King Operating Partners I LP Active Fund – 4 Steps – $25M with over 1M in proven reserves.
