Stubborn inventory both at home and abroad are giving analysts reason to believe that this could just be another "summer of cratering" for the oil and gas industry. Reports of increased Libyan production to 900,000 bbls/day, "it's highest level in four years", along with increased US production and high inventory levels have caused prices to return to the low $40's. This price is critical for many E&P companies here at home - as this is the breakeven for many regions throughout the states. Another telling sign? Oil futures have declined by 20% from January's high and entered into a bearish market. This may not cause an immediate reaction by oil & gas operators, but could create a significant impact for 2018 drilling schedules.
Solar Energy Gaining Colossal Momentum
Renewable energy opportunities have historically fallen as the "little brother" to mainstream energy sources such as coal and natural gas. Although some advancements have been made in the storage arena, the cost to supply the same power needs all-in just weren't comparable. However, Tucson Electric signed a deal this past week to supply solar and storage at 4.5 cents per kilowatt-hour over the next 20 years. "That's less than half the price of retail electricity power and a price low enough to compete with natural gas, coal, and nuclear power head to head in wholesale markets for what some might call 'baseload' power." The economics of this deal have the potential of exponential growth for solar energy around the world so long as the cost to produce & store it stays below other energy sources.