Commodity Trends

Oil vs Gold Chart

Which is Over Priced? Oil or Gold?

Was gold in a Bubble? Does the recent correction mean anything? With the value of the dollar constantly changing it is hard to tell what it all means. After all, can you imagine trying to build a house if every day when the workers arrived you gave them a different size ruler?

With everything from lumber to bitcoins skyrocketing in price (or the dollar devaluing), is there any way to tell the real value of something? How much is anything really worth? Is Oil overpriced? How about Gold? Is it overpriced? Is it cheap now that the price has come down? Looking at these commodities in the standard way, it’s often difficult to tell.

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The Future of U.S. Energy Independence

Historically, access to energy has been of strategic importance as countries that are not energy independent are subject to embargos, shortages, and political blackmail. In years past, wars were fought over land that produced oil and gas, but more recently we have seen battles like those in Ukraine where the battle was for the land that held pipelines transporting the gas. So, one reason that being energy independent is so important is that it makes your country more secure. But it also makes it less susceptible to price increases.

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Cutting Edge

The Death Of U.S. Shale Has Been Greatly Exaggerated

The current year marks the 15th anniversary of the U.S. shale boom, a period in which fracking technology across such states as Texas, Colorado, New Mexico, North Dakota, and Wyoming helped establish the nation as a top oil and gas producer. Unfortunately, high costs of production compared with conventional drilling has led to the sector consistently printing red ink and resulted in considerable destruction of shareholder value. The Covid-19 pandemic and subsequent oil price crash has led to investors souring on the industry further, credit becoming harder to come by, and a cross-section of Wall Street calling the end to the sector.

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Speed and Affordability: Cost of Internet Access Over Time

One of the fastest-changing areas of technology is internet access with “5G” currently being implemented across the country.   Not only are Speeds going up, usage is going up, and with the current pandemic, it has become a lifeline for many. Interestingly, although speeds are continuously increasing, costs are not. Overall, the trend is towards the decline, allowing people to get more for their money. While you can try to determine the way things are moving forward, the equation is likely far more complex than this and is liable to change with infrastructure or political events. Please continue reading for more insights and in-depth examination of the issue:

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Oil Majors That Bet Big On Renewables

Big Oil has frequently been chided for merely trying to burnish its green credentials, and so far, it has done little to convince us that it is truly moving forward to greenness. Despite the much-vaunted megatrend involving the global electrification drive and shift to renewable energy, the most ambitious pledges by Big Oil to pursue net-zero agendas remain weak at best.

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World Oil Production

Oil Demand Impacts Foreign Exchange Rates

To say that the past year has been an extraordinary period for the global oil market would be an understatement. Entering into 2020, the commodity was still feeling the impact of the late 2019 drone attack on a Saudi Aramco oil processing facility. In early 2020, oil prices were highly volatile in the aftermath of the killing of Iran’s Qasem Soleimani.

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