The Saudi Oil Minister Ali al-Naimi had this to say yesterday (as per the Guardian):
“We are maintaining our long-term focus rather than being swayed by the volatility of short-term conditions. However, if others do not begin to invest similarly in new capacity expansion projects, we could see within two to three years another price spike similar to or worse than what we witnessed in 2008. Low prices and weak demand had discouraged investment in energy projects. Those problems had been compounded by high development costs, tight credit markets and energy policies that are focused on alternative fuel sources“.
Well, I am not one for taking too much notice of what the Saudis or OPEC says, but in this case I am taking notice. Take close note of the Oil and Gas Rig counts by Baker Hughes
Supply is drying up…….what’s more the last rig count on May 22 (just a few days ago) was down again! The long term prospects for energy (oil and gas) couldn’t be any better.
Try looking at these two ETFs:
