The extraordinary growth in solar energy has been stopped in its tracks as a result of the global pandemic. Many new projects that would have made 2020 the largest growth year for the sector to date have been put on hold for the foreseeable future. Luckily, the stalled growth of the solar sector is just that – projects have simply been put on hold. As the world transitions to a new post-pandemic society, growth in solar power generation will resume its upward trajectory. While two decades of growth in the solar energy sector has been stunted by the coronavirus pandemic, the outlook for the future remains positive.
Did the Federal Bailout Simply Delay The Inevitable for Oil and Gas Companies?
At the end of March during the peak of the pandemic, the Federal Reserve was authorized to buy tens of billions of dollars in corporate bonds from the energy industry. These actions, paired with those taken by the Federal Government to save the oil and gas industry, were met with harsh criticism because the industry was struggling long before the global pandemic and seemed to simply be delaying the inevitable.
Commodity Supply Balance: How Production Cuts have Caused Bullish Sentiment on Commodity Markets
The dual black swan events of the COVID-19 pandemic and oil price war have created a unique analytical opportunity within petroleum products. As oil prices crashed, natural gas prices have largely remained unchanged due to the markets in which the commodities are used. Transportation which is the main use of oil has almost entirely stopped, whereas electricity generation and heating, the destination for most natural gases has remained similar to pre-2020 levels. Such modifications to consumption caused markets to go haywire and commodity prices to crash. With crude production cuts now occurring at a faster pace than anticipated and states lifting restrictions, supply and demand dynamics for liquids compared to natural gas has changed since April. As the United States begins returning to normal, an update to these commodity market assumptions is in order.
Crude Benchmarks and Price Spreads: How Market Intervention Creates Disconnect Between Regional and International Crude Prices
Speculator sentiment towards future pricing of commodities can create a wedge between regional and benchmark prices even though they are based on the same supply-demand principles. As long as financial markets continue to buoy WTI futures, these price spreads will continue to widen.
Natural Gas Rebound Poised for Recovery Before Crude Oil: Why the Market has Priced Electricity and Liquid Fuel Demand into Commodity Prices
The dual black swan events of the COVID-19 pandemic and oil price war have created a unique analytical opportunity within petroleum products as the strip price for natural gas is showing larger percentage increases than crude or NGLs because the market is pricing in the assumption that continued electricity demand will not fall as quickly as the oversupply of natural gas.
Basin Breakdown March 2020
In this episode your hosts Tavis and Sy revisit March, the month where COVID-19 began to be taken seriously and the worst of Saudi Arabia’s disagreement with Russia (so far)
OPEC+ Cuts – A Sigh Without Relief
Members of the group dubbed OPEC+ have (nearly) come to an agreement upon global production cuts, but the market has failed to respond. Does this spell disaster for the industry?
Predictions Before Thursday’s OPEC+ Meeting
Will Thursday’s OPEC+ meeting lead to global production cuts or will talks fall apart and end without a deal?
Back to the Future
Action must be taken in order to bring supply and demand back into balance by imposing production quotas. The Texas Railroad Commission is the only domestic governing body that has the immediate power to prorate production, and thus the only entity that has the power to save this drowning industry.
BREAKING NEWS – End of the Price War?
Oil prices surged this morning as President Trump announced Saudi Arabia and Russia would be cutting back 10 million barrels of production with more potentially on the horizon. As the White House meets with at least seven U.S. energy CEOs on Friday and an emergency OPEC+ meeting in the coming weeks, the news comes as a brief sigh of relief in a time when our industry is struggling to keep its head above water.
Disaster on the Horizon
With the world increasingly oversupplied due to a global pandemic and overproduction flooding the market, crude is being forced into storage in hopes of a future when prices begin to stabilize. The only problem – storage is reaching capacity.
Monday Madness: March 23
In this episode your host Tavis talks about, you guessed it, the virus. Huge drops in energy demand, no more nail salons for Nana, and the government asking a celebrity
Monday Madness: A March 16th Update
In this episode your host Tavis talks about how he is out of toilet paper, supertankers are making BANK, and the Saudi Prince’s choice to detain friends and family. A