What's Ahead for Oil, Energy Companies in 2018

The video discusses the recent trends in oil prices, highlighting a rally followed by a correction. It explores the divergence in earnings among energy sectors, with exploration and production companies expected to perform well, while refiners may struggle. The video analyzes company valuations, noting that exploration and production companies are fairly valued compared to the downstream sector. Key risks include the rapid return of shale production and potential price controls in Asia. Recommendations favor exploration and production companies, with caution advised for refiners. The supply-demand dynamics are influenced by shale production, affecting market balance.

What is the expected performance of exploration and production (E&P) companies in 2018?

• They are expected to struggle.

• They are expected to perform well.

• Their performance will be average.

• They will face significant losses.

How are the valuations of E&P companies compared to refiners and petrochemicals?

• E&P companies are not valued at all.

• E&P companies are fairly valued.

• E&P companies are undervalued.

• E&P companies are overvalued.

What is a potential risk for refinery earnings in Asia?

• Increased demand for oil.

• Government-imposed price controls.

• Decreased production of oil.

• High valuation of E&P companies.

What impact does US shale production have on the global oil market?

• It decreases global oil supply.

• It has no impact on oil prices.

• It increases global oil demand.

• It can lead to increased inventories.

According to the discussion, what would indicate a balanced oil market?

• Oil prices closer to $50.

• An increase in refinery earnings.

• Oil prices closer to $100.

• A decrease in shale production.