While catching up on reading over the weekend I came across an article in the Calgary Herald that made my hands go cold. The headline was “Shell sees oil lows of $70 in 2012 volatility.”
The story reported on Shell’s recent 2012 outlook and quoted Shell Chief Executive Peter Voser as saying, in preparing the outlook, that Shell had used “a $50-$90 range for oil.”
Then, discussing the $50-$90 planning range, “Simon Henry, Shell’s chief financial officer, told analysts: ‘I’m not sure we see it right at the bottom of that one over the next 12 months, but we could certainly see it in the middle of that range.'”
What is the impact on Alaska if Shell’s outlook is correct, and oil ends up “in the middle” of a $50 – $90/barrel price range on the year? Very, very bad things. Continue reading
