The US Energy Boom Will Be Back After a Brief Intermission

The US energy renaissance may be taking a breather, exasperated from ten years of mind boggling growth, but unquestionably it is not over. Global energy demand is expected to grow well into the future and the US is poised to take advantage of the trend to become the world’s marginal producer. At current oil prices, US energy producers will (and have already) cut back their capital expenditures for 2015-16, which should slow production growth and allow demand to catch up. When demand eventually surpasses production, prices will rise and more projects will become economically viable, leading of course to increased production. The energy markets are not immune to the invisible forces of supply and demand.