OIL PRICE: $70/BBL
Could an oil and gas bounce-back loom in America's near future? During his appearance on CNBC's "Squawk Box," energy magnate Boone Pickens seems to think so, forecasting prices to rise to $70 per barrel by the end of the year.
Pickens noted producers' efforts to balance the rocky market with rig cuts, but blamed overzealous production habits for slashing oil prices by half since June. Today, U.S. crude prices reached as low as $43.
Baker Hughes reported a rig count of 866; a far cry from the U.S. high of 4,530 in 1981, but still well above the low of 488.
Pickens also offered forecast for natural gas prices, which he predicted would rise from the current price of $2.84 to $6 in the next five years.
"We were so efficient, the industry did such a good job, the industry showed up with too much gas," he said in the interview. "So, at one time—around 5 years ago—we had 1,400 rigs running on natural gas. Today we have 300. We oversupplied the market, and boy, we did it big time."
He also mentioned progress being made with the Pickens Plan— his energy plan proposed in 2008—including the possibility of trucks running on natural gas.
"It's happening," Pickens said. "But man, it's happening slowly ... The thing you can count on in nautral gas, the price isn't going to run up on you, like it does on oil."
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AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.