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80 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 8 "Three years of low oil prices have constrained investments in conventional projects, and the IEA has just recently reiterated its warning that an oil price spike is in the cards in 2020, citing growing demand for oil that could outstrip the pace of new con- ventional supply," he said. Pickering noted that rig counts continue to drop because US shale drilling has been softer than expected as companies there, as elsewhere, retool to be profitable with less and face higher financ- ing rates along with a 'backwardated' (futures price is below the spot price) oil curve that disincentives storage and accelerates with- drawals, as well as OPEC's commitment to reducing supply by 1.8 mmbpd through March. "… crude has been on a run since the third week of June. The big story …is that CCI (Commodity Channel Index) and thus the CCX (Canadian Crude Oil Index) has outperformed WTI and the USO (U.S. Oil Fund) handily. So, as in the past, on oil rallies, Canadian crude outperforms," he said. "Canada has one of the most important barrels of oil globally. Getting it to tidewater is mission critical in the interest of national security." The positivity is echoed by Dr. Kent Moors in his Oil & Energy Investor newsletter. He says the global market has "finally stabi- lized" and he predicts it will surge higher by the end of Q1 2018, based on "companies in the best locations," those with the least debt and with product pumping right now. "I expect the movement to continue incrementally. Each new ceiling provides its own resistance, especially when improving profitability entices additional production from significant sur- plus reserves," he said. Through it all, American shale has become more competi- tive, both at the wellhead and through record exports achieved throughout the entire oil and natural gas spectrum of products, says the IPAA. US shale can now compete globally and the much anticipated repeal of the oil export ban in December would facilitate penetration of US crude, products and LNG to regions * Resource World does not sell your information to third parties #604-700 W Pender St., Vancouver BC V6C 1G8 Canada online at www.resourceworld.com or phone 1.877.484.3800 SAVE 50% up to Resource World (Print and Digital Edition) 1 Year/6 issues (CAD $24.95) Resource World (Digital Edition) 1 Year/6 issues (CAD $12.95) Resource World International (outside Canada and USA (Print and Digital Edition) 1 Year/6 issues (CAD $99.95) NAME ADDRESS TEL EMAIL