Oil Price heading higher
Posted: Sat Sep 23, 2017 6:32 pm
More analysts are coming to realize that oil supply & demand are going to be much tighter in 2018. As I have been saying all year, people are beginning to realize that the United States cannot meet global demand on its own. The very high decline rates of the tight oil horizontal wells will make it difficult for the U.S. to increase production the more production comes from shale. Go look at slide 7 of my 9/22 podcast and you will see that actual U.S. oil production has been flat since February despite a significant increase in the U.S. active rig count.
------------------------------------
Crude oil prices will settle between $60 and $75 a barrel in 2018 as domestic shale production falls short of what many analysts expect according to Dr. Alhajji, a nationally known consultant out of Dallas. Dr. Alhajji made a presentation on the energy sector to the University of Oklahoma College of Law Energy Society late last week.
The severe decline in capital expenditures in the sector over the last several years will bring supply and demand back into balance quite soon, and may lead to much higher prices due to the delays and cancellations of major energy projects.
Dr. Alhajji thinks the impact of electric vehicles on the demand for oil is much overstated, and noted global demand grows year after year by over 1 million barrels per day. Prices he forecasts for 2018 will make the domestic shale sector a robust one for industry players. < Demand is actually going up by more than 1.5 million barrels per day. See the latest IEA Oil Market Report.
The OU Law student Energy Society was honored to host his presentation. Future events are planned for Norman and elsewhere.
------------------------------------------------------------
Now watch this short video: https://www.raymondjames.com/corporatio ... -july-2017
---------------------------------------------------------
My prediction is that when U.S. refiners get back to over 90% capacity in October, we will see large draws from crude oil storage week after week through year-end.
------------------------------------
Crude oil prices will settle between $60 and $75 a barrel in 2018 as domestic shale production falls short of what many analysts expect according to Dr. Alhajji, a nationally known consultant out of Dallas. Dr. Alhajji made a presentation on the energy sector to the University of Oklahoma College of Law Energy Society late last week.
The severe decline in capital expenditures in the sector over the last several years will bring supply and demand back into balance quite soon, and may lead to much higher prices due to the delays and cancellations of major energy projects.
Dr. Alhajji thinks the impact of electric vehicles on the demand for oil is much overstated, and noted global demand grows year after year by over 1 million barrels per day. Prices he forecasts for 2018 will make the domestic shale sector a robust one for industry players. < Demand is actually going up by more than 1.5 million barrels per day. See the latest IEA Oil Market Report.
The OU Law student Energy Society was honored to host his presentation. Future events are planned for Norman and elsewhere.
------------------------------------------------------------
Now watch this short video: https://www.raymondjames.com/corporatio ... -july-2017
---------------------------------------------------------
My prediction is that when U.S. refiners get back to over 90% capacity in October, we will see large draws from crude oil storage week after week through year-end.