Energy

Oil producers face their ‘life or death’ question

Shell et al need structural change in order to continue. These are engineering companies (upstream) with remarkably massive engineering and financial capabilities on the one hand and consumer oriented networks and outlets on the downstream side. They’re used to long term planning and hence mostly conservative, and that has taken its toll. They have such …

Oil producers face their ‘life or death’ questionRead More »

Do we still believe old oil’s sales pitch?

The FT article “Saudi Aramco chief warns of looming oil shortage” https://www.ft.com/content/ed1e8102-212f-11e7-b7d3-163f5a7f229c is more interesting for the comments it now attracts than for the content. We’re no longer buying these sales pitches. Still, we do live in a world were we did buy these pitches for decades and where they mostly were right. Oil is vital …

Do we still believe old oil’s sales pitch?Read More »

Putin’s EU boycott

http://blogs.ft.com/the-world/2014/08/food-fight-eu-weighs-up-risks-of-russias-ban/ Russia could perhaps develop a more effective agricultural economy over the decades, but only if protectionism isolates it from low cost, high quality imports at all times, Russia cannot compete in agriculture in the open market largely because there is no incentive to compete with abroad as long as Russia’s natural resource exports are …

Putin’s EU boycottRead More »