Of course, just like last time, truly rolling out these new technologies would ultimately have a significant
impact on oil prices, potentially making it cheap again.
For other horizontal wells, they might payout but it is on a timeline in excess of a decade and
dependent on oil prices recovering significantly from the $ 40 - $ 50 range.
However, recent encouraging data about global oil demand growth is making some observers and players in the industry more
bullish on oil prices.
We think that can be traced partly to investors
focusing on oil prices and the resulting moderate slowdown in business of late.
The magnitude of the impact is found to depend not
just on oil prices, but also on other uncertainties connected to energy supply and demand technologies, alternative resources and climate policy.
Economists have estimated that the new Saudi 2017 budget is
based on oil prices in a range of $ 47 to $ 55 / b.
The US$ 50 / barrel mark is highly significant as this is the breakeven level set by recent HSBC research looking at the effect
on oil prices in a 2C scenario.
Whether or not that happens — and frankly, it's an extreme example of the worst - case scenario for US shale producers — a glut of global oil inventories is already
weighing on oil prices.
Based
on an oil price of $ 81 a barrel, the government believed that they could still afford their 2011 political commitments, while still posting a surplus of $ 1.6 billion in 2015 - 16.
CNBC's Jackie DeAngelis
reports on oil prices ahead of the Department of Energy's crude inventory report.
As with nearly every independent producer, an investment in Halcon is a bullish
bet on oil prices climbing from here.
Hannah Anderson of J.P. Morgan Asset Management says the near - term focus is
on oil prices ahead of an important meeting in June on OPEC - led oil curbs, but the weak dollar is the longer - term variable for markets.
CNBC's Jackie DeAngelis reports
on oil prices as a stronger dollar takes some support out of the market.
Technological advances in U.S. shale are contributing to a supply surplus and keeping a cap
on any oil price rise, but the growth rate of U.S. oil production has slowed recently.
Buffett waited patiently for the price to reach a certain level before he started purchasing, clearly banking
on oil prices bottoming out --- someday.
The MUSE consulting report, upon which the National Energy Board Review relied, was premised
on oil prices from 2012 and 2013.
She may not even be quite sure yet herself, and may choose to
wait on oil prices, the Paris climate summit in December and the Saudi mood to help dictate her play.
«Don't just take a
punt on the oil price, because the path of recovery is going to have its ups and downs.»
John Kilduff, Again Capital, provides his
outlook on oil prices as U.S. production levels steadily increase.
While Gundlach did not comment
Tuesday on oil prices, DoubleLine's Deputy Chief Investment Officer Jeffrey Sherman said in response to a question on the webcast that «there is the structural support for oil prices to be where they are» and that «the energy market does still look pretty attractive.»
CNBC's Jackie DeAngelis reports the
update on oil prices and supplies in the wake of Hurricane Harvey.
They can no longer
rely on oil prices to cover governance deficiencies, as could Chávez during much of the 2000s.
With regard to the Fed's
observation on oil prices, Yellen said it is «one of the most important developments shaping the global outlook.»
It is now pretty obvious that the delay in the budget to April 21 had nothing to do with uncertainty resulting from the dramatic
decline on oil prices.
Though buyouts are rare in the cyclical industry, it could make sense for investors willing to bet on a Malaysian recovery and
on oil prices staying low.
First, an overly aggressive oil price forecast implied that Alberta's budget targets were
reliant on oil prices exceeding market expectations and instead oil prices fell below expectations.
Warren Buffett has been consistently wrong on oil, but many experts are calling a bottom
on oil prices now that the investor extraordinaire has upped his ante in Phillips 66, betting that he can't be wrong three times in a row.
«The economic outlook in the region is closely linked to global developments, primarily through the impact of global economic
activity on oil prices,» Beyhum says.
With lower prices forcing many oil companies to take on more debt, the bankruptcy or closure of one or more major oil companies is not an impossible scenario, and would have major
repercussions on oil prices, both in the short and long term.
Weighing in
on oil price uncertainty, market watchers have been in a state of confusion over varying reports over the past three days as to the status of exports from Libya's biggest producing oilfield.
Possibly to the readers» surprise, Gause finds that the invasion of Kuwait was actually based
on its oil price policy and is not explained by his own regional security complex, which seems like a flaw in the used framework, as it indicates a lack of explanatory power.