What if the world is shifting from an “investment phase” of a 30-year commodity cycle to an “exploitation phase?”
How does this professional assessment of future markets cause you as a railroad or freight carrier to change from Plan A to maybe Plan B or even Plan D?
From Bloomberg, Sep 17, 2015
A glut of crude may keep oil prices low for the next 15 years, according to Goldman Sachs Group Inc. That is a very long period.
This strategic commodities report cites in part Jeffrey Currie in an interview at Lake Louise, Alberta.
Goldman’s long-term forecast for crude is at $50 a barrel, he said. He also observed that “the risks are to the downside given what’s happening in the other commodity markets and the macro markets more broadly.”
Lower iron ore, copper and steel prices as well oil and natural gas –PLUS weaker currencies in commodity-producing countries — have reduced costs for oil companies, according to Currie.
The world is shifting from an “investment phase” of a 30-year commodity cycle to an “exploitation phase,” with shale fields as an important source of output, he said.
To read the entire article, go to http://bloom.bg/1JcGYJu