10. Even President Obama jumped in and did us a favor with the elimination of the 40-year-old export ban. It might have been done grudgingly but we got it.
11. LNG exports will set sail by March 2016.
12. Coal miners displaced by the current administration’s EPA in Kentucky and West Virginia have been finding work in oil and gas fields. Hopefully they’ll find more soon enough.
13. We can celebrate the abrupt end of the glossy multicolored booklets from fawning jewelers and art auctioneers arriving in the mail.
14. David Einhorn’s crass and predictable “mother fracker” short on Pioneer Resources was a yawn. The stock even climbed after the news. If this was a political statement, which was my read of the subtext, then short the stock now big guy.
The inevitable will occur. Supply and demand will cross. The question is will Wall Street notice? Some of the analysts caught the cross in early 2014 but most didn’t. For full disclosure, I missed it too.
The question this time around is will we see it coming and if so will it be an orderly reaction? Or will the market miss the coming wake-up call and instead deliver a severe supply disruption with skyrocketing prices and a political response along the lines of windfall profits taxes? My worry is that everything takes longer than you think, from recognizing coming imbalances in the global crude complex to painting the house. In the meantime, just hang on and keep your equipment running. You’re going to need it. Until then, all the best of luck.
(Republished with permission from oilprice.com)
