Premier Oil makes a historic find in the Gulf of Mexico, probably one of the 5 largest discoveries of oil in the world, and its shares surge by a 1/3 to over 60p, we have to ask ourselves if this black gold discovery is as valuable as it used to be or will it simply add to the headache being experienced by OPEC in reaching a profitable oil price.
The truth is we are drowning in oil. Total Non-OPEC production in 2018, led by America, is expected to rise by 1.5 million barrels per day. This equates to double 2017’s rate of output growth. Shale oil will comprise half the increase. Shale Oil has surprised the Saudi’s and adjusted to lower prices, innovating and re-inventing itself at a phenomenal rate.