Recently I received a very thoughtful comment from a subscriber.
In response to “The Truth About Iran’s Impact on Oil Prices,” Ramon had this to say about playing “the Iran card:”
I find your updates very helpful in cutting through the chatter. After spending a large amount of time and resources trying to understand petroleum related energy, I developed this question.
If the budgets of OPEC and Non-OPEC oil dependent governments need in excess of $100bbl pricing to sustain their budgets, doesn’t this also signal that increases in the longer term will exceed that pricing?
I understand capital resets, restructures and bad bond debts will be had. However, since gold is “off the balance” sheets for fiscal responsibility, I surmise that black gold is not and therefore due to its world wide availability, this consumable will act as an asset class to sustain dependent governments in the long run.
While 2015 and 2016 will likely see WTI prices range from $55-$75 a barrel, I am developing an idea that 2017 and beyond will be significant or at least until other larger sources such as Nat Gas or Nuclear energy can ramp up.
Sorry for the long comment but what’s the longer play here? Is it oil, nat gas, or nuclear?
Now, I admit that I don’t respond to reader queries as often as I should, but Ramon’s comments deserve their due.