Just time for a flash blog today. Travel commitments over the next two weeks will render blogging services somewhat intermittent
The COAG Energy Council meeting on Friday delivered a number of sensible objectives rather than any Big Bang approach.
The key to actually getting something useful from these will depend on Government commitment and a willingness to push through against entrenched interests.
This is exemplified by proposals to introduce greater competition, transparency, etc, into gas pipelines. For the owners of said pipelines there is no more important issue than to fight any reduction in their market power – whilst for the politicians and regulators there are dozens of issues to deal with.
Crude prices traded flat on Friday – but were up >8% during the week. Brent closed at US$50.88 and WTI at US$48.52.
The weekly BHI rig report again showed signs of (unwelcome) life – particularly in the Permian. Ten oil rigs (and zero gas rigs) were added.
Henry Hub traded down ~1% to close at US$2.58 – being essentially flat for the week.
Quote of the day
Some philosophical quotes this week – starting with the following from Douglas Adams’ The Hitchhiker’s Guide to the Galaxy:
“There is a theory which states that if ever anyone discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable. There is another theory which states that this has already happened.”