June 16th - General Section Meeting
Scholarship Recipients Lunch and Energy Expert Allen Brooks
Speaker: G. Allen Brooks, Energy Expert and Columnist
Date: Thursday, June 16th, 2016 @ 11:30 AM
Location: The Petroleum Club, 12th Floor, 5060 California Avenue, Bakersfield
Abstract: We are two years past the last peak in oil prices. The shock of OPEC's 2014 decision to turn over control of oil pricing to market forces has upset conventional thinking of how to deal with an oversupplied market. The oil oversupply was primarily driven by the North American shale revolution as U.S. output grew by four million barrels a day. Geopolitical turmoil has taken large volumes of conventional oil supply off the market, but demand has remained weak. The political scene in the Middle East has become even more unsettled with the change in Saudi Arabian leadership and the rise to leadership of the next genera-tion of the royal family represented by the 30-something year old son of the King with a vision to move the country away from its total dependence on oil. The 85% increase in oil prices since their low in mid-February has created some optimism that the worst of this downturn is behind us. However, the oil price rally has only returned prices to where they were in the fall of 2015. My talk will explore this history, the forces that created the down-turn and how those forces are reshaping the industry and its future. With the growing prominence of the environmental movement, there are legitimate questions about what is the long-term future for fossil fuels, or even if there will be a future. We will consider what the industry's recovery will look like and what its long-term future may be. Realizing that all forecasts will ultimately prove wrong, understanding the dynamics shaping the indus-try will help frame a range of likely outcomes in the future.
Allen Brooks has spent 40-plus years in the energy and investment industries as an energy securities analyst, an oilfield service company manager, a consultant to energy company managements and a member of the board of directors of oilfield service companies. Since 2005, Mr. Brooks has been an advisor to PPHB LP, a boutique oilfield service investment banking firm with offices in Houston and Calgary. There he publishes his highly regarded energy newsletter, Musings From the Oil Patch, and provides proprietary research for the firm's partners.
During his career, Mr. Brooks was recognized as a Wall Street Journal All-Star analyst. He headed the oilfield service equity research team at CIBC World Markets for eight years and prior to that was the senior oilfield service analyst for New Orleans-based energy research firm, Howard Weil, for four years. In the early 1990s, Mr. Brooks was a member of the senior management team of ENSCO International, the offshore contract drilling company. He also served as the court appointed expert in the bankruptcy of Global Marine Drilling Company in the mid 1980s, at a time when he also was a consultant to many oil service companies and financial institutions including the Maritime Administration. He currently consults with the CEO of a leading offshore service company.
Mr. Brooks is a member of the board of directors of two Canadian-based oilfield service companies. He writes an energy column for Maritime Executive magazine, is a regular contributor to Workboat.com and OilPro.com. He started his investment career in 1969; is an Economics graduate of the University of Connecticut; and has an M.S. degree in Economics from Cornell University. He received his Chartered Financial Analyst designation in 1975.