OPEC does not see oil prices returning to triple-digit territory within the next 25 years. The group expects oil prices to rise by an average of about $5 per year over the course of this decade, only reaching $80 per barrel in 2020. From there, it sees oil prices rising slowly, hitting $95 per barrel in 2040.
Is the dangerously unspoken theory that ISIS is a bulwark against Iran what's keeping the West from tackling the Islamic State wholeheartedly on its territory? With no nation that can control it, the threat is now out of control and a war of ambiguous targets is emerging.
As oil producers confront below $50 a barrel prices for a prolonged period, some will finally start to significantly curtail or even shut down operations. And that is going to severely hurt an all but invisible group; strippers in the United States.
Turkey's game of playing all sides in the balance of power game is difficult to sustain. The downing by Turkey of a Russian jet conducting air strikes over northern Syria is just the first move in the new phase of this game, and analysts should probably start looking at ISIS oil sales to Turkey in their examinations of why Turkey downed a Russian jet at a time when the Russians were specifically targeting ISIS-controlled oil facilities and tankers.
The massive resources available in the Eastern Mediterranean offer the prospect of employment and stability. The pursuit of common interests could unlock enormous untapped potential in the region.
Oil and gas companies have laid off more than 250,000 workers around the world, a tally that will rise if oil prices remain in the dumps.
Saudi Arabia could be playing a longer game, intensifying its market share strategy by encroaching on Russia's traditional market in Europe. An increase in Saudi oil flowing to Europe threatens to undermine Russia's principle market.
U.S. production is now down by about 500,000 barrels per day since April. Oil prices will rise over the next year or so as U.S. shale is forced to cut back. That adjustment – high-cost suppliers forced out – is how markets are supposed to work.
Saudi Arabia and Russia cannot long withstand the pain they have brought upon themselves by maintaining low oil prices. They have, in effect, turned no pain no gain into intense pain no gain and set in motion the possibility neither will exit the low price Crudedome under its own power.
Even more than hybrid cars, grid storage and the ‘powerwall’ will drive lithium demand through the roof. Now the game is all about new resources—and specifically, American resources, with all eyes on the brine. Tesla knows this, and so do its competitors. Investors who know this will get in on the game before new entrants start producing.