Articles Tagged: oil prices

What Goes Up Comes Down and What Goes Down, Comes Up

Oil prices are cyclical. They don’t stay up forever or stay down forever. Investments are made on price expectations over the life of a production project. Most if not all of the investors in shale oil factored this reality into their investment analysis. OPEC’s decision was based on a number of factors, mostly involving politics. […]

Do Falling Oil Prices Change the Math on Keystone? Probably Not

Keystone XL is a long term capital investment. As such, the economic decision to proceed with it, all other considerations aside, depends on the long term outlook for oil prices and alternatives. The current decline in prices is not likely to affect the decision to proceed unless they substantially reduced TransCanada’s capital spending. Even with […]

The Oil Price Swoon Won’t Stop the Shale Boom

With oil prices sliding, energy investors are worried, while Saudi Arabia and Russia no doubt hope, that low prices will cap America’s boom in shale-oil production. Green-energy types sit by, happy to see turmoil in the fossil-fuel sector. But price dips are common in oil and other markets subject to cyclical swings. True enough, sellers […]

What’s the Impact of Falling Oil Prices? Only Time Will Tell

The history of oil prices is that they never rise forever and don’t fall forever. The current situation is partially the result of the oil renaissance in the US. Production has reached levels not seen since the early 1970s. This increase represents about 90% of the increase in global production this year. But, this increase […]

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