Oil Price Outlook

Brian Hicks

Written By Brian Hicks

Posted June 8, 2009

With oil prices down because of economic gloom, oil majors aren’t investing as much in finding new supplies.

The Economist recently highlighted the IEA estimate that overall investment in exploration and production will drop by 15-20%.

Here we see in an Economist chart just what that trend looks like on a year-to-year basis, with a staggering plunge taking place from 2006-2007:

oil and gas projects approved

Your first thought might be, “Why did investment drop so hard in 2007, when the recession hadn’t taken hold yet?”

But a better question is, “What will the oil price do once demand is restored and exploration has left us scraping the barrel bottoms?”

Read Chris Nelder’s updated oil price outlook for the answer.

-Sam Hopkins


Angel Publishing Investor Club Discord - Chat Now

Brian Hicks Premium


Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.