Sheiks vs. Shale: The New Economic Realities of Oil and Gas and their Impacts on America’s Energy Industry Presentation to the Seattle Economics Council Bernard L. Weinstein, Ph.D. Associate Director, Maguire Energy Institute Cox School of Business Southern Methodist University Dallas, Texas February 3, 2016
THE RECENT BOOM IN THE OIL PATCH
BIRD’S EYE VIEW OF A FRAC SITE IN THE PERMIAN BASIN
GROWTH IN OIL PRODUCTION: US v. OPEC
BATTLE OF THE SHEIKS VS. SHALE: WHO WILL BLINK FIRST?
WHAT DO WE MEAN BY “BREAKEVEN?” Source: Wood Mackenzie
HOW LOW CAN IT GO?
$380 billion of deferred E&P projects worldwide
MANUFACTURING OUTPUT IS FALLING. WHY?
300,000 Announced Layoffs and Counting: Is This the New Normal?
36 filings in 2015 LAYOFFS AND BANKRUPTCIES
STACKED RIGS IN MIDLAND, TEXAS
IDLED OFFSHORE DRILLING RIGS-GULF OF MEXICO
“Oil Slump Hits Houston Home Market” Wall St. Journal, January 19, 2016
IS CHEAP GAS GOOD FOR AMERICA?
THE TRUCKING INDUSTRY IS ON A ROLL
Freight Loadings Forecast Expect 2006 levels to be exceeded in 2016 Source: FTR Trucking Update Report 2006 Peak
2015 WAS A RECORD YEAR FOR AUTO SALES
AIRLINES EARNING RECORD PROFITS
IS THIS WHERE WE’RE HEADING?
UNCERTAINTY #1: IS THE CHINESE ECONOMY IMPLODING?
CAN IRAN REALLY BOOST PRODUCTION BY ONE MILLION BBD IN A YEAR? UNCERTAINTY #2
OIL PRICES AND INVESTMENT: A 65-YEAR PERSPECTIVE