"The New Oil Order" - Making Sense of an Industry's Transformation
The “New Oil Order” created by the U.S. shale revolution is reshaping global energy markets and bringing with it a new era of volatility. Across our macro and industry research, we examine the search for a new equilibrium in prices and how the changed landscape is impacting markets, economies, industries and companies worldwide.
“Some of these projects have become so uneconomic, so stranded, that we almost don’t see any scenario under which they would be developed.” - Michele Della Vigna
“When we think about the New Oil Order, the key theme is this idea of low-cost producers now beginning to grow production.” – Jeff Currie
“The decline in oil prices is, on balance, we think a positive for global economic activity. The oil consumers are generally getting a boost.” – Jan Hatzius
Jeff Currie, global head of Commodities Research at Goldman Sachs, discusses the surge in US oil production, the changing role of OPEC and how lower oil prices are impacting the global economy.
After a decade-long “investment phase” that helped unleash the shale revolution, oil is seeking a new equilibrium between supply and demand. Jeff Currie, head of Commodities Research for Global Investment Research at Goldman Sachs, describes how the market has entered an “exploitation phase” that puts downward pressure on prices. (Slides and quotes excerpted from Feb. 2015 presentation)
The shale revolution in the United States has dramatically altered the global energy landscape. Jeff Currie, global head of Commodities Research at Goldman Sachs, discusses how “The New Oil Order” is reshaping the way markets and the oil and gas industry balance supply and demand.
"There is a substantial potential here for increase [in production]… but it’s going to take time”
- Jeff Currie