Re: Oil + Natural Gas Price Outlook - Next 6 mths
I think at the moment there is an unnaturally high level of prices for both the O&G. There is enough stock of both O&G in US which should have helped lower the prices. To me investors are fuelling small incidents around the world to keep the prices artificially high. Looking at the prices of Oil Service Companies (although they are doing extremely good), it is evident that many are priced way higher than what they actually deserve even with this astounding profit season for them.
Towards the mid to the end of the year, we will start to see production increases from major oil producers (e.g., Saudi, US, Iran??). IMHO we haven't reached the "peak oil" period. We are reaching a period where a step change in technological advancement in oil exploration and production will take place. At the moment we are only able to produce 30-40% of the oil and gas in any reservoir. Just look at the possibility if we can increase the recovery rate to 70/80% or more.