About Gary L Hunt

Gary Hunt is a global business executive with 20+ years experience as a “C’ level trusted adviser on corporate strategy, M&A, and recurring revenue business model strategies.

His focus is information technology and energy vertical “sweet spots” where IT and OT converge to offer scalable growth opportunities to leverage data and analytics into advanced predictive analytics solutions using recurring revenue business models.

Are we seeing our Energy Future Today in New England?

EIA New England losses generation and neeeds more gas

SOURCE: US EIAMy first energy CEO job was serving as General Manager of a troubled wholesale electric joint action agency in New England. The Massachusetts Municipal Wholesale Electric Company (MMWEC) served the power supply requirements for 28 municipal utilities across New England. It was troubled because its traditional source of power generation fuel had been oil and coal. But oil’s reliability and costs were badly hurt by the Arab oil embargo and the spiking of oil prices. Many New England …Continue Reading »

Give OPEC what it wants, and give it to them hard!

The New Oil Equilibrium

OPEC will Regret Squeezing US Shale Oil. At the current oil production pace the US is expected to set a new all-time high in oil production surpassing 9.637 million barrels of oil per day by 2016. This top’s the 9.077 million barrels a day in 2014, then the highest level produced since 1983 according to the US Energy Information Administration. IHS reported that only about 20% of US tight oil producers need $90 a barrel to break-even and "about 80% of the tight oil estimated to be pumped in …Continue Reading »

Why Keystone XL Matters!

KeystoneMap

In his State of the Union speech President Barack Obama effectively tried to take credit for rising U.S. oil and gas production and lower gasoline prices as if to refute the polls that report that the country seems to have the opposite view---the country is not moving in the right direction. Never mind that his Administration has thrown up one roadblock or regulation after another to the use of fossil fuels. “At this moment—with a growing economy, shrinking deficits, bustling industry and …Continue Reading »

Where will Falling Crude Oil Prices Settle?

WTI and Brent Oil Prices

SOURCE:  US EIA That is the question everyone in the oil and gas industry is asking themselves. After reaching monthly peaks of $112 per barrel (bbl) and $105/bbl in June 2014, crude oil benchmarks Brent and West Texas Intermediate (WTI) fell to $62/bbl and $59/bbl in December 2014. Today, January 9, 2015 Brent crude is priced at $49/bbl and WTI at $47/bbl. There are two common reactions to this fall in oil prices. “OMG---Yes!” is the consumer reaction every time they fill up the gas …Continue Reading »

Volatility Happens but Collateral Damage Kills You

EIA OPEC net oil exports to fall in 2014 and 2015

  The US Energy Information Administration’s latest Short-Term Energy Outlook, forecasts that Organization of the Petroleum Exporting Countries (OPEC) member countries not counting Iran will experience oil export revenue 14% lower at year-end 2014 compared to a year ago. That is $700 billion left in the pockets of oil consumers over the last year. If you are a filling your gas tank you are cheering. But this is the worst OPEC performance since 2010 not just because oil prices declined but …Continue Reading »

Four Stages of Oil Market Volatility

Oil Price Volatility

Crude oil prices continue their downward movement with the question most asked---when will this end? The answer of course is that commodity prices especially fuels are notoriously volatile. The official OPEC market report for December with data through the end of November described it with precise technical language saying market conditions reflect “reflect bearish global crude oil market fundamentals as abundant supply remains significantly higher than demand.” The answer is that prices will …Continue Reading »

Have the Saudi’s Underestimated the US Oil Industry?

EIA fig_9a  Crude YOY 2012 2013

SOURCE: US EIA The decision by OPEC to hold production targets level caused oil prices to fall another ten dollars per barrel in the aftermath. There has been the expected wailing and gnashing of teeth with talk in the media and elsewhere about how the Saudi’s were taking aim at the US shale revolution. There may even be some measure of truth to it. We understand the Saudi’s and the rest of OPEC mat be irritated at the US for finding a way to escape the bondage of high imported oil …Continue Reading »

I’m Talking to the OPEC Man in the Mirror!

EIA US oil reserves keep rising

OPEC crude oversupply " I'm talking to the man in the mirror.  I'm asking him to change his ways.. . . " That is the Michael Jackson song that keeps replaying in my mind as I read the report from the IEA and OPEC itself, that the cartel and non-OPEC members including the US overproduced OPEC's oil production target of 30 million barrels per day in October 2014 by more than 600,000 barrels/day to 30.6 mb/d. This incremental increase in swing productive capacity is the factor to watch for your …Continue Reading »

The US Skunk at the OPEC Lawn Party!

Spot Prices

SOURCE US EIA The press is full of speculation about the cause of OPEC’s fall in oil prices and the motivation behind Saudi Arabia’s decision to ‘hang tough’ with production quotas unchanged from their 30 bbl/d target. Despite what the Saudi’s have been intimating for weeks, the industry seemed to expect OPEC to blink and cut production at their November 27th meeting. It may have been Thanksgiving in the US but there was little to be thankful for around the OPEC meeting table in …Continue Reading »

Making Sense of OPEC Oil Market Politics

Chatham House OPEC breakeven

SOURCE Chatham House Saudi Arabia has always provided the adult supervision among the 12 OPEC members. The November 27th meeting in Vienna was no different as OPEC refused to cut production targets from the present 30 million barrels a day. But the reality that global oil prices have fallen more than 30% is hitting OPEC members in their wallets making for more tension going into this meeting. Saudi Arabia and its Gulf allies Kuwait, UAE, Qatar stood their ground saying they wanted to let the …Continue Reading »