“Oil Rig” – Tobias Vogt via Flickr (CC BY-SA 2.0)
On November 29, trading platform IG brought none other than Malcolm Graham-Wood and Spencer Welch to a live internet audience, to discuss some of the toughest issues facing today’s oil industry. You can explore the IGCommunityChat in detail to hear the nuanced opinions offered up by these two experts.
We know our readers will be interested to learn about issues related to trading oil and oil prices, in today’s rapidly evolving energy industry environment, so let’s take a closer look at what the two experts discussed.
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“3D Decreasing Oil Prices” – Chris Potter via Flickr (CC BY-SA 2.0)
Here are some of the interesting thoughts touched upon by these bright minds:
– Russia has suppressed productions in order to boost oil prices in an uncertain price environment. The shale oil revolution in the United States is starting to be replicated in other markets, upsetting the industry pricing order. Will stability return or will price manipulation become the new normal?
– Some are worried that renewable energy is growing so fast that oil won’t remain the king of global energy for much longer. Others point out that, with their massive coffers and global reach, oil giants are the best positioned to own the renewable industry of the future. Whatever the case, renewables have a long way to go before they can truly threaten oil’s dominance. What challenges must be overcome before a new renewable paradigm is possible?
– One way the oil industry is responding to uncertain profit margins is by increasing efficiency at all points in the pipeline. Artificial intelligence, digital twin infrastructure design, and new drilling standards are allowing the oil industry a bit more wiggle room when it comes to overhead and profit. Will this be enough to ensure the longevity of the industry as we know it?
All this and more was discussed in the November chat. For those who don’t know, Graham-Wood and Welch are well equipped to speak on these topics.
Graham-Wood is a three-decade veteran of the oil industry, and has worked for some of the most recognizable industry titans. Today, he works for his own firm as an industry consultant. Welch is the director of oil markets, as well as downstream and energy for IHS Markit. He is an expert in oil valuation, performing marketability studies throughout the world. He previously worked for 13 years at BP, in production and refining planning.
