One of the loudest remaining bulls in oil has thrown in the towel: Sanford Bernstein, the research firm, has dropped its five-year oil forecast to an average of $59 a barrel, down from $73. According to Bernstein analysts, oil will average $50 a barrel through next year, and not rise to $70 as they had previously expected, nor will it go up to the $80s through at least 2021.
Even as oil prices plunged over the last three years from more than $100 a barrel into the $20s and then hovered in the $40-to-$55 range, Bernstein had steadfastly retained its forecast of tight markets and revived high prices. Until now.
There is one reason: It's U.S. shale oil. Libya and Nigeria are seeing a big jump in production, too, which is contributing to the global oil surplus. But American shale, in particular the Permian Basin in Texas, is proving to be extraordinarily productive. The U.S. has astonishingly become a global oil exporting power, pushing out 1 million barrels of oil onto the global market.
Google parent Alphabet's research and development division spun off a project Thursday that aims to make geothermal energy an easier lift for consumers.
The product: Geothermal systems require putting pipes in the ground to take advantage of the different temperature above and below ground to heat or cool a building. The company, called Dandelion, says it has developed a "a fast, slender drill" that "could drill just one or two deep holes just a few inches wide, and compared to typical installation rigs, it produced less waste and took up much less space as it operated."
Installing the system will cost $20,000, according to the company, which is setting up financing for customers. It'll be available first to customers in parts of New York state.
New York Attorney General Eric Schneiderman could force Secretary of State Rex Tillerson to testify under oath about whether ExxonMobil misled investors about the impact of climate change while he served as the company's CEO, per the AP. Tillerson has retained a private attorney to help in the matter should he be called to testify after nine Exxon employees are deposed in the next few weeks. Getting to Tillerson might not happen for "several months or even years," the AP notes.
A few notes on the investigation:
12 attorneys general have claimed this probe is a political move from Schneiderman to highlight climate change for liberal voters.
The investigation has been ongoing for 18 months now and has already forced Exxon to release about 3 million internal documents.
Exxon investors voted last month to have Exxon disclose the financial risks associated with climate change.
