Op-Ed Articles

Monday, 02/02/2015

If you are reading this, Rusty has forgiven my first attempt at a thought piece for RBN. What I want to do in this blog is to explore the world we find ourselves in today with the rather abrupt collapse of crude oil prices over the past few months and the less abrupt - but no less severe - world of New York City Gate prices for natural gas which averaged a paltry $2.40/MMbtu during August through October 2014, dipping below $2.00/MCF for a number of days, even a few days during December.

The title suggests that over my 50 plus years of working in the energy industry, what we are seeing is not without precedent. But just like these cycles in the past, many of those in the industry and those who observe, regulate, and invest in the industry seem to forget one of the most basic laws of physics which applies somewhat equally to economics—for every action there is an equal and opposite reaction.