Low Costs of Oil Prices Impact Energy Decisions: Geopolitics and Investments

Using both political sources and economic indicators, Blake Meadows analyzes the current oil market. This article specifically focuses the geopolitical nature of the oil supply and its impact on certain oil assets. The research indicates that difficult to extract oil resources such as fracking and tar sands are taking an economic hit. However, the same research indicates that long-term the oil market will rebound. What that means for difficult to extract resources is that they will not be profitable for immediate production but will be a valuable asset long term as the oil market balances itself out. Thus companies who are involved in energy investments should be careful not to unload these resources but should probably minimize short-term production and avoid bringing new reserves on-line until the market rebounds