Hi John,
As one who is a novice in thinking about investing in the patch, I'm probably no one to comment. But it sure seems to me that we got too many rigs running right now for there to be any significant upside to the equities in E&P or, IMHO, on the product side. Problem is, the energy sector is a carousel industry, endlessly cycling from supply boom to bust. We are coming into surplus right now on all fronts, be they crude, alkanes, refined products, or the conversion to Mwhs. Industrial demand is depressed, especially for the NGLs, which have fallen through the floor. Perhaps a harbinger for things to come in the NG and gasoline sectors? Intuitively I think so. Forward markets are still in contango, but I believe this is a lagging market right now. Not accepting the reality of much greater supply coming into the system. Mostly due to the worldwide economic slowdown.
Comments and corrections welcomed!
And this is JM2C, Ray :) |
