Energy Week
Energy Week
222 - OPEC cuts | James Hill MCF Energy

222 - OPEC cuts | James Hill MCF Energy

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.

Energy Week
Energy Week
Ellen Wald and Ryan Ray discuss the week's events in energy, and what it all means to you.