Doom and gloom are all you’re getting from the oil markets these days – a lot of negativity and with it, depressed oil and oil stock prices.
The problem is simple, I suppose, yet so difficult to find a solution for.
OPEC, you see, had tried first to squeeze US shale oil producers out of business – flooding the markets and fighting for market share with as big a discount as it took to ruin American oil.
It didn’t work.
Not that the result is much of a victory for US oil – it’s been a pyrrhic victory at best.
You see, US oil – while it managed to survive the two years of OPEC gluts and depressed prices, now can’t seem to get out of its own way.
They succeeded in surviving – by cutting top line costs to the bone, increasing efficiencies that dropped breakeven costs for getting shale oil out of the ground and concentrating on producing from only the absolute best shale acreage this country’s got.
But all of that – ALL OF IT – was designed to see US oil get through the tough times and take advantage of the next oil BOOM.
And where is that boom? It’s still coming, but far slower than either OPEC or US oil anticipated.
That’s because all of those unexpected survivor US oil companies continue to pump oil; the exact thing that continues to hold prices down and extend the oil BUST.
READ THIS from Reuters, outlining the Catch-22 US oil producers find themselves in now.
And READ THIS from the IEA, which says that US production will entirely eat up the increases in demand that were supposed to turn the 2014-2016 oil bust into the 2017-20?? oil boom.
Sounds gloomy, right?
SO, what should we do as energy investors? Do we give up on oil and oil stocks and sell everything that’s related to fossil fuels? Do we stick our heads in the sand and try to ignore the pessimistic reports and negative projections? Do we scream ‘Damn the Torpedoes’ and go full steam ahead?
Actually, the answer has got to be nuanced, just as the questions are – Nothing is as pessimistic as it seems today, just as nothing was as optimistic as it seemed in 2014, when oil was screaming above $100 a barrel.
And here’s where I point you to my webinar, where we try to figure out the truth about what’s happening in oil and oil stocks and chart a course that will see you through to safety.
I won’t lie, it’s been a very tough market this first half of 2017 – toughest I may have ever seen, and impossibly hard to find winners.
But I’m not giving up. I still believe a great opportunity is coming. If you believe that too, you will definitely benefit from my next webinar, scheduled for this Monday June 19th at 4PM – sign up here.
