Vancouver Investment Advisor Ritch Wigham

Long term oil supply: shortages coming?

The article below actually signals that the current prices for crude will likely hold in a rough range of $40-$42 to just either side of $50. If OPEC is only exceeding by about 800,000/day they are very much within the 79% compliance that was being reported prior to this meeting. I totally agree with the assessment that the Russians are only”cutting” because they are in decline all ready.

However, the critical comment is in relation to future development. It screams that there will be real longer term shortages, especially in Eastern Europe and Asia as fewer projects come on stream. The western majors(Exxon,BP etal) are really the only groups that are technically capable to bring tough projects efficiently on line.

Remember that virtually everywhere on the planet conventional crude extraction is becoming more and more difficult (note the Brazilian discoveries that are deeper than any oil ever brought to surface in the ocean) . Unless you believe that the economies of the world “WILL NOT RECOVER” then you should be calling me to find out how best for you,(depending on your risk tolerance)to start being pro-active in this critical market place.

See the full article here.

Also, see this related piece from Bloomberg.

Ritch

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