Photo: Alexander Poegl/JBC Energy
Memo to U.S. energy consumers: you’ve got it good.That was the conclusion we drew from the presentation given by Vienna-based JBC Energy’s Alexander Poegl at this year’s Association for the Study of Peak Oil mega-conference.
Slowing demand, cheap natural gas and ramped up production are conspiring to give American customers a five- to 10-year moment of low, low prices.
Read on to see why Poegl believes that for the foreseeable future, petroleum product users will be able to rest easy at night.
...Mainly thanks to efficiency and natural gas switching in the West. Oil producers' only hope is developing-world demand.
European producers are already getting killed because of demand collapse and have begun selling off assets.
...Which has led international producers to opt for a technology risk premium, which they can control; as opposed to geopolitical, which they can't.
Meanwhile, the U.S. natgas industry has years of overcapacity to work through — meaning low prices there too.
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