Energy supply glut: Insights from the US
Nikko AM Australia’s Energy Analyst, Warwick Cumming, recently visited the US to meet with shale oil and gas producers, gas consumers, service providers, consultants and brokers to gain further insights on the dramatic changes in the global energy market. Broadly, the outlook for the major energy commodities is as follows: Shale oil is free cash flow negative at spot prices; oil will be in oversupply well into calendar year 2016 (CY16) with a sustained recovery occurring in CY17; natural gas will be in abundant supply in the USD 3 – USD 4/mmbtu (million British thermal units) range; and Liquified natural gas (LNG) will be in oversupply until 2020. What are the implications of these expected outcomes for Australian energy companies? (VIEW LINK)
Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income, Multi-Asset and Alternative strategies. In April 2021, Yarra Capital Management acquired...