Dr. Daniel Fine: Oil and gas: A look at what 2018 may bring

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  1. bluewill67
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    bluewill67 Rookie

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    Fine: Oil and gas: A look at what 2018 may bring
    Use the link above for the full article->
    “Daniel Fine | Energy
    12:24 a.m. MT Dec. 24, 2017

    Trump leads mass deregulation effort; comeback seen for San Juan Basin

    The price of oil in 2018 will be volatile with commodity market traders selling on signals of OPEC-Russia “cheating” or members producing more oil than the extended Algiers Agreement output quotas. This should be expected as U.S. shale producers push past 10 million barrels per day and exceed 1970 as the all-time high for the United States. At 10.4 million bpd (barrels per day), American oil production will surpass Saudi Arabia and Russia. Herein lies the price range: 2015 all over again.

    Real OPEC and Russian output will break Algiers (1.8 million barrels off the world market until September). Price range to $62.50 WTI high in the first half of the year and $38.65 at end of the second half or one year from today; 2019 would resemble most of 2015.

    There is a second threat to price and production in the Southwest and Dakota. Hedge funds invested in public or listed companies want share buy-backs or dividends. In short, they want to make money now as opposed to operators sinking more cashflow into new production projects. The conflict inside Hess is the first example.

    Traditional oil operators are 5-year business planners for returns on investment while the new private equity owners or investors are quarterly or payback pressure points for higher stock market share prices and distribution. OPEC/Russia is the external flow plow back for future production projects and more for short-term return on investment market threat leading to the lower price range alongside an internal investor/owner threat of less cash"
     
  2. william the wie
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    william the wie Gold Member

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    Iran and Russia will go in the tank if he is right.
     
  3. Moonglow
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    Moonglow BANNED

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    Really no surprise...No royalty payment this year..
     
  4. Old Rocks
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    Old Rocks Diamond Member

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