Plummeting Oil Prices, How low will the 2015 OIL PRICES go ?
January 08, 2015
With the February WTI Contract Oil Prices plummeting below $50 US and Brent below $55 US, it is becoming exceedingly clear future Oil Prices could fall further if World Oil Producers [especially the Saudi’s] do not take any action. Some energy experts and economists are touting the idea that Oil Prices could see the $30 – $40 US range before bottoming out. It is my opinion that their predictions may be coming true , but it is early in the year. I believe we have to get over the initial shock of Low Oil Prices and then focus on how to move forward once Oil Prices have stabilized. I am in the Camp that the WTI Oil Price will stabilize between $45-$55 US /bbl in the middle part of 2015 and possibly remain there throughout 2016. I am expecting only the Companies with a strong Balance Sheet, cash in the bank and lower production costs will be able to adapt quickly enough to survive the situation from these reduced Oil revenues. It is not a “pretty picture” for the Oil & Gas Industry and I expect there will be massive lay-offs and cost cutting measures from most of the energy companies in the coming year.