OPEC+ announces surprise oil output cuts
- Does OPEC think that China's oil demand isn't coming back strong?
- Russia retaliating against price cap from West
- Want to defend $80 or higher oil
- Could it be about speculation? Speculators LOVE big price jumps.
- Reaction to lack of price support from demand side (US SPR buys that didn't happen when WTI went beflow $70)
- global implications if China's economy getting red hot and sucking up all the oil
- Could Saudi Arabia and OPEC be trying to cool off the Chinese economy by raising prices?
- LNG imports in China fell by 22% in 2022, only expected to recover 9% in 2023
Goldman Sachs raises Brent oil price forecasts after OPEC+ output cuts
Special Guest - James Hill MCF Energy
- publicly traded company on Canadian exchange exploring for oil and gas in Europe
- Europe sees natural gas as transition fuel
- Europe has been drunk on Russian gas for decades now, allowed themselves to ignore resources within their own borders.
- Russian gas was cheap so they didn't have to drill
- Drilled well within 6 months in Austria. Regulatory environment is still strict but permitting process has been much streamlined
- Pipeline infrastructure is actually very close to wells that are drilling now or considering drilling.
- Not fracking wells, proven wells. Ability to flow without much stimulation.
- engaging with the local community to engage concerns, haven't found much negative sentiment from local communities.