Equity Income Update: Energy in 2015

Global energy and commodities stocks have entered a new era of dynamic change. Until quite recently much of the debate had been centered on a world of finite resources and the security of supply. Advances in extraction technologies are reshaping the marketplace, which should have led to optimism about a future of continued supply, but weaker demand from China and other emerging markets coupled with improvements in transport efficiency in developed countries and not forgetting the impact of additional supply from shale plus a return of production in Libya means that we are faced with an unprecedented glut of not just oil, but most other major commodities.