Energy and economic expert Dr. Loren Scott talks about how the one day of negative oil prices impacted the market and industry. From the futures markets to contractual nuances, the negative oil prices left scars.
Dr. Scott also comments on the long term impacts of Saudi Arabia and Russia’s recent actions of “flooding the market” with oil.
Host Jason Spiess asks if oil was going the way of Ag 2.0. In that, over the past decade the science of oil and gas has taken much of the guess work out of the industry translating it more into a price predictable commodity. Dr. Scott comments on whether he believes the industry is heading that way or not.
The interview concludes with a discussion of the polarizing place oil and gas in in right now. Mike Sommers, CEO, API, was on record early dismissing any talk about bail outs, subsidies or government production controls. Last week, Parsley Energy CEO Matt Gallagher is publicly talking about Texas controlling oil production.
Dr. Scott opines how the evolution of Earth Day has influenced younger executives in oil and gas, which is why you are seeing more young executives talking about bail outs and government controlled markets.
Dr. Loren C. Scott is President and founder of the firm. He was on the Economics Department faculty at Louisiana State University from 1969 to 1998, where he rose through the ranks from Assistant Professor to the holder of the Freeport-McMoran endowed Chair of Economics. He is presently Professor Emeritus of Economics at LSU.
Over the thirteen-year period from 1983-96, Dr. Scott was the chairman of the Economics Department at LSU. During that time, the Department’s ranking among the 3,000 economics departments in the U.S. rose from 101st to 38th. He received 7 awards at LSU for outstanding classroom teaching.
Dr. Scott is co-developer of the Louisiana econometric model, a model used for providing annual forecasts of the Louisiana economy, which are released each fall. He was a co-investigator on over $1 million in grant research at LSU and is the author of over 75 articles and technical reports in addition to reports written for consulting clients.
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
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