Gary L Hunt

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.

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Lessons from the Gas Pump about Oil Price Volatility

WTI Brent Crude price decline EIA

As I filled the gas tank in my wife’s car this weekend I chuckled about the great low price I was paying for the experience. It made me feel so good I went inside the Chevron service station and bought a lottery ticket and a few scratchers for good measure. This was my lucky day. Later, I asked my wife if she won anything on her scratchers---“Yes! She cheered $10 and a free ticket. Now where are you taking me for dinner.” What does this have to do with oil price volatility? Actually, I bet …Continue Reading »

Volatility is a Wonderful Thing!

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VIX, the ‘Fear Index’ or Volatility Index of S&P 500 options over the next 30 days published daily on the Chicago Board Options Exchange was down a little from its highs last week. Oil prices are still at multi-year lows, the DJIA rebounded Friday, October 17th moving up 263 points but is still off 5% from its September, 2014 highs. Volatility Happens! Actually volatility is a wonderful thing. If prices were predictable no one would make any money. Volatility is the heart beat of the …Continue Reading »

A Fly on the Wall at OPEC’s November 27th Meeting

The next meeting of OPEC ministers is scheduled to take place November 27, 2014 in Vienna. It is not going to be business as usual. The stated purpose of the meeting is to set production policies for 2015. But we all know what the members will be discussing over tea or something stronger. “How do we get this problem under control?” A cartel is a group of companies or, in this case, countries who engage in collusion to limit or control the market price of a product. In many countries this …Continue Reading »

Big Sale on Oil! Limited Time Only!

WTI Brent Crude price decline EIA

SOURCE: US EIA, Bloomberg, CME Group That’s the real headline from the geopolitical reaction to falling oil prices. In the past falling world oil prices have provoked a meeting of the OPEC oil ministers who would agree to and announce a cartel cut in production targets to bring down supply levels to match demand. Then the ministers would fly home on their private jets and cheat hoping some other OPEC member would take the production cut medicine so they would not get sick. Too often that …Continue Reading »

Making Sense of Falling Oil Prices

EIA net energy imports lowest in 29 years

SOURCE: US EIA World oil prices have fallen by 30% since their June 2014 high of about $115 per barrel. As I write this on October 15th Brent crude, the global benchmark, is at about $84.88 per barrel. WTI, the US benchmark is at $81.58 per barrel. This rapid fall in oil prices has spooked the market and set off actions and reactions that only contribute to the volatility. The predominant fear in the market is that prices will continue to fall and wreak havoc around the world. So what is …Continue Reading »

What to Make of Lower Oil Prices? Merry Christmas!

Lower Demand and Higher Libyan Supply

SOURCE: US EIA As I write this on October 13, 2014, the Brent crude oil price is $88per barrel or about 23% lower than its $115 year-to-date peak on June 19. For 13 straight months until July 2014 monthly Brent spot prices traded from $107 to $112 per barrel according to the US Energy information Administration (EIA). As oil prices declined  below $100 per barrel the herd mentality has been of display big time as the price of oil dropped and the herd started running faster---the question …Continue Reading »

How We ‘Fracked’ the Energy Industry—-for the Good!

EIA US Dry Gas Production

SOURCE: US EIA The energy industry is being turned on its head by changes in technology, regulation and global markets. In oil and gas the shale revolution onshore was unleashed by technology changes in 3D seismic imaging making E&P more accurate and productive, horizontal drilling enabling access to the ribbon-like shale and tight oil formations, and hydraulic fracturing which uses liquids and pressure to crack open or ‘frack’ the shale layers to release its precious commodity. Fracking …Continue Reading »

How Sweet is it? I’m Talking about Light Sweet Crude Oil

EIA US Crude Projection thru 2015

SOURCE:  US Energy Information Administraton ‘So there will be weeping and gnashing of teeth’ the parable of the weeds goes in Matthew 13:42. No, this is not a Bible lesson nor am I suggesting a revelation about the future direction of oil prices. But it always surprises me when there is so much angst when oil prices fall as if there is some immutable law of nature that sways oil prices to only go up and never down. The current condition is caused by several market factors including the …Continue Reading »

Ten Factors Driving Energy Markets

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How do we explain the growth in oil and natural gas supply in the US from tight formations and shale.  What we see happening today in the natural gas is not a bubble--- it is the remnant of the bubble that burst in the Great Recession as record high prices for natural gas in the run-up to 2008 created the demand for more supply.  The worry then was that there was not enough gas to meet demand without importing it as LNG from the same wacky countries that sold us oil.   High priced LNG was …Continue Reading »

US EIA September 2014 Short Term Energy Outlook

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US EIA is out with its September 2014 release of the Short Term Energy Outlook. The forecast says power producers added 4.35 gigawatts (GW) of new capacity during the first half of 2014. This may seem like a lot but that rate is 40% below last year's new build rate. Natural gas is the fuel of choice with half of the new capacity and renewable generation makes up the rest. No surprise that no new coal-fired power plants were built in the first half of 2014, compared with 1.51 GW last year, but …Continue Reading »