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Low CAPEX Spending = Higher Energy Prices


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.

Written by

James E. Gore, CFA®, CAIA, CMT®

Jim serves as the Chief Investment Officer of THOR, is a Chartered Financial Analyst charter-holder, a Chartered Alternative Investment Analyst, a Chartered Market Technician, a member of the Association for Investment Management and Research and a member of the Cincinnati Society of Financial Analysts.

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