Is it lights out for oil or is its recovery a flash in the pan?


The market and even general economic implications of the crash of oil are profound.

Most commentators see the precipitous fall in oil prices since 2014, and the recent recovery off of historical lows, as driven by geo-political factors. Indeed, the rise of U.S. shale oil production, competition between OPEC producers, and even new drilling technologies have changed the landscape and diversified the players.

We, at Entelligent, have a view that perhaps transcends the geopolitical market paradigm while still recognizing its influence. The age of oil appears to be over. Alternative energy sources have emerged that can substitute for traditional fuels, first and foremost from the perspective of improving energy efficiency. While global regulations to curb greenhouse gases may be in flux, they are still influential factors in play. Such regulations recognize that there is a social cost to the build-up of atmospheric greenhouse gases levels. These two factors alone have forever changed the landscape for energy generation and impact not just a few industries but everything we consume.  Even for the diversified investor, there are reasons to take notice of these trends.

to view the full report:

register or sign in