The Oilholic wonders if his ‘crude’ words would have been quite as
forthcoming if he was surrounded by tree huggers in British Columbia.
Nonetheless, as Trudeau says, it is all about tapping the
tar sands ethically and responsibly, now that US President Donald Trump has
approved the long-delayed Keystone XL pipeline. Away from all the public
relations mumbo-jumbo of the Canadian Prime Minister, it looks like the OPEC put,
OPEC & non-OPEC price floor of $50, call it what you will is now over.
That’s after Saudi Energy Minister Khalid Al-Falih warned
the oil market not to take Riyadh’s support for granted. Here are The Oilholic’s thoughts in a detailed post for Forbes. Despite long bets by money managers, such
calls appeared bereft of clear thinking, and were solely predicated on Opec
rolling over its cuts beyond June, despite US producers cashing in on it.
Since Al-Falih’s quip included “we will not bear the burden
of free riders” the market took notice, and WTI fell the most among benchmarks,
breaching the $50 floor for the first time in 2017 as the number of operational US rigs continues to rise.
Away from the oil price, yours truly had a fascinating conversation
on behalf of the International Business Times UK with Vimpar Kapur, President of
Honeywell Process Solution (the multinational conglomerate’s automation unit). Kapur opined that process efficiencies in the oil and gas business are likely togather further momentum over the next 12-18 months as the crude world gets used to a $50s oil price. And that’s all from Houston folks! It’s been a fascinating week, but it’s time for that parting selfie, and a brief trip to Canada before the flight home to London. Keep reading, keep it ‘crude’!
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