Over a Barrel

"OPEC has lost its power to set the oil price and control it. That role has passed to the speculators."

Contemplating the turmoil in the Middle East and the fears that it will spread and infect the price of oil, it is sobering to think back 40 years to the start of the 1970s.

The oil price in 1970 was no more than two dollars a barrel, less than one fiftieth of the $100 price it has been hovering at in recent weeks (it went much higher in 2008).

One reason for the big jump is the way that the OPEC oil producers learnt to flex their muscles at the start of the 1970s. Hardly anyone had heard of the Organization of Petroleum Exporting Countries before the 1970s.

By the time the decade ended—after two great spurts in the price of oil—the Arab oil producers had discovered their strength, found their voice and become what many regarded as the bogeymen of international economics.

But short-term prices in the oil market are now dominated by the expectations of the financial futures markets.

OPEC has lost its power to set the oil price and control it. That role has passed to the speculators. Their ceaseless activities in the markets generate huge and confusing market noise. . .and cause huge gyrations in oil prices over the course of months, days or even hours.

Oil exploration companies have to take decisions to invest billions in looking for oil and then getting it out of the ground. The decisions will determine the decades of production, but the calculations about the likely profitability of a new oil field have to be taken amid huge uncertainties about the future price of oil.

No wonder oil companies insist they hate trying to predict the price of oil.

Option Partner to Continue Operations at Energy Firm's Texas Oil & Gas Project
Source: Streetwise Reports (01/23/2021)

The efforts will meet Torchlight Energy Resources' development requirements at Hazel.

Target Price Raised on Energy Firm Making 'Transformative Acquisition'
Source: Streetwise Reports (01/06/2021)

The terms and benefits of Earthstone Energy's purchase of an oil and gas company, an "eye-catching act of deal making," are presented in a ROTH Capital Partners report.

Energy Firm to Combine with Materials, Nanocomposites Company
Source: Streetwise Reports (12/16/2020)

Torchlight Energy Resources sees the transaction providing its shareholders "access to the multibillion-dollar markets that Metamaterial serves."

Oil & Gas Producer Reports on Thailand Operations
Source: Streetwise Reports (12/02/2020)

Pan Orient Energy Corp. reports on continuing drill operations in Thailand.

Energy Company Boosts Thailand Oil Production, Offers 'Low Risk Production Growth'
Source: Streetwise Reports (11/19/2020)

The highlights of Pan Orient Energy's third quarter are presented in a Mackie Research Capital Corp. report.

Texas Oil & Gas Firm to Sell Its Stake in Delaware Basin Project
Source: Streetwise Reports (11/18/2020)

For its interest, Torchlight Energy Resources is to receive $350,000.

Oil & Gas Firm Reports Q3 Operational, Financial Results
Source: Streetwise Reports (11/16/2020)

Pan Orient Energy and its joint venture partner continue producing and selling oil from its L53 Concession in Thailand, which are funding ongoing exploration work there.

Texas Oil & Gas Explorer Completes Fracking of Midland Basin Well
Source: Streetwise Reports (11/11/2020)

The next step for Torchlight Energy's well at Hazel is flowback, which is to start next week.

Altus Midstream Shares Flow Higher on Q3 Earnings and Plans for $1.50/Share Dividend in Q1/21
Source: Streetwise Reports (11/05/2020)

Shares of Altus Midstream Co. traded 170% higher after the firm reported Q3/20 financial results and announced plans to pay a quarterly dividend of $1.50 per share beginning in March 2021.