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8 January , 20155 January , 2015

Tomorrow’s Oil Shock?

While today’s pricing is low… See my previous post, tomorrow’s Oil pricing will inevitably rise, and there will be accompanying spikes in the pricing.

Why?

The answer is Simple demand-supply economics.

There is no steady equilibrium in Oil production. Oil is a finite commodity and the wells which produce oil, tend to produce less oil each year. While demand tends to increase by a modest 1-1.5% per year (around 1 million barrels a day) , without new sources of oil the production of oil declines by around 6% per year as older wells run dry ( around 5.5 million barrels a day).… Read more

12 December , 201412 December , 2014

How low can it go?

In our series on the plummeting price of oil, here’s the inside take on how low Oil can go before it’s no longer economic t0 turn on the tap.

The best way to look at when the biggest oil players will start feeling the squeeze from lower prices is the “cash cost.”

“Cash cost is the only true floor,” Morgan Stanley analyst Adam Longson said.… Read more

8 December , 20145 December , 2014

Worlds dumbest idea- my take

Not my view, but that of commentator James Montier.

And I can see exactly where he is coming from. And thinking through his views, what superficially seems like a good idea- reward CEOs for increasing share price- has taken a damaging and illogical turn.

In short, SVM (Shareholder Value management) theory states that the only relevant detail corporations have to focus on is delivering increased financial returns to shareholders.… Read more

26 September , 201415 September , 2014

Managing Boards for Peak Performance

This is the last in a series of five articles about Boards of Directors- about building a board, identifying what a Board should do, selecting board members and how to spot and stop dysfunction.

A recent piece of research I read had an interesting recommendation- cut down on Board members.

The research suggested that, the number of directors has a strong correlation to company performance.… Read more

22 September , 201410 September , 2014

Top 10 signs of a Dysfunctional Board

I believe I was very lucky that few of the Boards of Directors I was a part of were really dysfunctional. Having said that a dysfunctional board of directors has the ability to cause multiple headaches for your business or organization. In the penultimate discussion on Boards Lets look at why Boards go bad.

Not only will a dysfunctional board of directors often fail to make decisions that are in the best interest of the business, its dysfunction has the potential to move outside the confines of the boardroom, causing negative publicity.