Related Articles
Forward article link
Share PDF with colleagues

Spikes and troughs

Only real supply-side intervention has stopped oil-price volatility. But those days are gone, argues Bob McNally's new book

If you need an example of a market best not left to the invisible hand, oil is it. Its price gyrations can destroy producers or hamstring consumer economies. And yet "extreme volatility… is an intrinsic feature of the oil industry," writes Bob McNally in a new book.* Everyone wants price stability—the foundation on which to make investment decisions and plan economies. But the market, says McNally, president of the Rapidan Group and a former energy advisor to the White House, isn't about to yield it. Forget the deal between Opec and non-Opec producers—Saudi Arabia's recent decision to cut oil output is not going to bring the prolonged period of calm everyone seeks. Since 2014, notes McNall

Also in this section
Predicting oil prices
12 May 2017
Bulging stocks, US output gains and Opec's need to make further production cuts are derailing a recovery in oil prices, according to AOGC 2017’s conference chairman
Nurturing the green shoots of upstream growth
10 May 2017
A combination of cuts to upstream capital spending and steepening well decline rates will threaten global supply security, industry leaders warn
AOGC 2017: Driving a new approach
10 May 2017
Despite the challenges facing the energy industry, it is well-placed to meet them, AOGC 2017 hears