Low CAPEX Spending = Higher Energy Prices
In this market update we show the cause and effect of capital expenditures (CAPEX) for energy companies and the price of oil. Since it takes time for CAPEX to bear fruit in the energy space, expect prices to remain high due to this recent lack of investment. Today we are seeing this in Europe. Europe is in worse shape than the US, as natural gas production is 33% below where it was in 2010.