Weekend Summary
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Will Hurricane Season 2017 Be Above-Average?
June and July have been very active hurricane seasons, with Arlene, Bret, and Cindy already burning through the named storm list. Does this mean hurricane season 2017 will be worse than average? Turns out, there’s no correlation between early-season activity and overall activity. That said, forecasters have been saying this season would be above-average, so we can still expect a heavy season, even if we can’t extrapolate from June/July action. Read more: https://weather.com/storms/hurricane/news/early-season-tropical-atlantic-activity-hurricane-season
U.S. Is Not the Only “Swing Producer”
While most reports focus on the importance of U.S. production in offsetting OPEC cuts, a recent report highlighted that Canadian oil sands will be the 2nd largest contributor to supply growth in the world. Both U.S. and Canadian production have been forces to significantly improve efficiencies to survive in this low-price environment. Read more: https://www.bloomberg.com/news/articles/2017-07-13/oil-sands-helps-shale-stymie-opec-s-effort-to-rebalance-market
And Don’t Forget Mexico
Last week, Premier Oil announced an oil discovery off the coast of Mexico that contained over 1 billion barrels. The implications for Mexico are huge. Mexico is trying to liberalize its energy sector, opening up their offshore region to international drilling. Major discoveries like this one will make it harder to reverse those changes, and will help reverse the output declines Mexico has seen in recent years. Read More: http://oilprice.com/Energy/Energy-General/World-Class-Oil-Discovery-Puts-Mexico-Back-In-The-Race.html
BP Planning on $50 for next five-years
BP CEO Bob Dudley said the company is expecting oil prices to remain around $50 over the next five years. According to Dudley, weekly inventory reports should not be the focus, but rather daily supply/demand balance and the overall trend in existing inventories. Per his comments, BP only needs $30 oil to cover their expenses. Read more: http://www.cnbc.com/2017/07/12/bp-ceo-says-company-planning-for-50-oil-for-the-next-five-years.html
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Tagged: Canada production, hurricane, US production, Weather
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