Thousands of market participants, companies, individuals and governments, track US crude inventories. These weekly inventory levels remain the best data point for market participants to gain a relatively current view on the global supply and demand balance. If inventories are building it means the market...
It has been a complaint for the last several years that the capital markets have become inefficient for oil and gas companies, particularly in Canada. We can see how this could happen, as interference in any sector from stakeholders and governments is bound to result...
As oil & gas technology professionals, we often find ourselves in discussions on whether oil and gas companies should build software in-house or buy third-party solutions. Outlined below are many of the pros and cons that entities should consider. In-House Solution Benefits Building in-house software can...
In commodity markets, the thing you expect to happen is often the exact opposite of what occurs. This lesson has been taught to industry veterans time and time again, and the impacts of IMO 2020 are another great example. In future weeks we plan to...
The value of WTI at Cushing, Oklahoma is the benchmark for crude prices in North America. It is also the primary input into CME Group’s NYMEX Light Sweet Crude Oil contract, often referred to as WTI. Although it's often called the WTI contract, WTI is...
The amount of oil in storage is one of the most commonly referenced data points that drives oil prices. Crude storage statistics are widely available and regularly disseminated. Even in parts of the world where data isn’t readily disclosed, satellite images can approximate how much...
Shale gas has replaced coal with a clean-burning fuel faster than activists could have dreamed. Declining supply costs and an ability to provide consistent baseload power, perfectly positioned natural gas for this victory. All oil and gas companies deserve credit for this shift.Even in the...
Global crude qualities have shifted significantly in recent years. Global demand has shifted towards heavier crude while the makeup of global supply has shifted lighter. This global shift in crude quality supply is already impacting end markets. We are observing a near-term supply glut in...
On Sunday night Rachel Notley announced a mandated production cut in Alberta, for crude oil and bitumen, of 325,000 bbls/d (representing ~8.7% of production). This short-term course of action was also supported by Jason Kenney and the UCP. At Validere, we always appreciate people tackling...
The rapid adoption of the Chinese crude contract represents a significant change in global crude markets. Already representing 16% of global market share, the contract has pulled liquidity from Brent and WTI contracts and may have been a factor in the recent volatility in those...