As we continue toward global oil supply and demand balance with the impacts of the pandemic beginning to slowly fade, there is a renewed focus on ESG and carbon policy by both industry and government. ESG and carbon policy may drive up North American energy production costs In response to the need to strengthen Environmental, Social and Governance (ESG) practices, energy companies in North America are re-evaluating the way they operate to attract investment. In addition to the ESG movement, [Read more]
Price Forecasting for Reserve Evaluations
How are commodity prices forecast? How do forecast prices differ from strip pricing? Why do these forecasts not always change in response to market variations? These are just some of the questions that arise time and time again throughout the reserves process. Futures, or forward curves are not truly spot price forecasts In addition to market expectations of future prices related to supply and demand, a variety of other factors can influence futures curves including, but not limited to, [Read more]
GLJ Petroleum Consultants: October 2018 Price Forecast
The Canadian energy industry continues to persist in the face of opposition and adversity. Although a lower Canadian dollar helps to soften the blow of large differentials on prices received, Canadian oil and natural gas continue to be heavily discounted compared to benchmark American prices. There is some truth though, to the old adage; “that which does not kill us, makes us stronger”. Many producers have been able to reduce operations and development costs through improvements in efficiency [Read more]
Column: The conundrum of the Canadian oil differential
Imagine being the manufacturer of one of the most highly in demand items on Amazon today, and having the ability to produce a large amount in order to fulfill that demand but are stifled by the fact that your local post office only allows you to ship 50 items a week. So in order to get your products to your customers at the same price as your competitors (that may not have the 50 item per week limit) you have to pay extra for expedited shipping. This takes revenue off the top and effectively [Read more]