What might be considered a factor in the immediate future of the O&G industry in the US is the oversea's situation in regards to Oil supply.
Oil futures in US have been climbing all day, and its been a rapid rate. There appears to be some real concerns on the longevity of supply out of the middle east atm with the ongoing buildup of unrest thats not being resolved.
- The clash in Saudi Arabia took place in the oil-rich Eastern Province. Saudi Arabia’s Shiite minority is concentrated in the kingdom’s eastern oil-producing hub, which lies across a 16-mile (26-kilometer) causeway from Shiite-majority Bahrain. Saudi Arabia is the largest producer in the Organization of Petroleum Exporting Countries.
- The Arab League imposed unprecedented sanctions on Syria
- NATO attacks on Pakistani border posts.
- France moots Iran import ban'
- Iran “has a grip” over the Strait of Hormuz, through which about a third of seaborne oil cargoes from the Middle East pass, Kwan said in e-mailed comments today.
- Potential military confrontations over Iran’s nuclear program
- There’s still a significant risk premium, with sanctions on Iran and unrest in Egypt and Syria, which will threaten middle east security.
- Oil climbed for a second day in New York on speculation that Europe’s steps to tame its debt crisis may sustain demand and sanctions against Syria will threaten Middle East stability.
If the Strait of Hormuz is compromised, well were in a new world of oil pricing.
I would rather see the middle east situation settle down but the current indications are not looking too good.
