OPEC deal to only modestly impact consumers- CNBC
Many were betting on the outcome of the OPEC meeting as indicated by the rise and fall of some energy stock. The success of the meeting was Saudi Arabi and Iran, along the remaining OPEC members, agreeing on the decrease of oil production across the board. And the winners of the deal -consumers. We should notice little impact of 5 to 15 cents increase at the pump price. The increase to heating cost rose months ago as they are predicting a colder winter in northeast in 2017 than 2016.
Being a financial news junkie, at DUG- Hart Energy , I took note of predictions of the cost of oil per barrel would be about $50-$52; about the same amount economists predicted as recent as September 2016. This price point while it is a prolonged savings for us consumers continues to be a pain for U.S. drillers as there is still more supply than demand globally. However, should all OPEC members honor and cut production, and the price of oil to rises to about $55/barrel, U.S. drillers in TX and ND could benefit by picking up the OPEC decreased production. Plus there is renewed support for the oil & gas industry as President-elect Donald Trump has vowed to increase drilling in the U.S. Today the U.S. is the world’s third-largest producer after Saudi Arabia and Russia. With the newly found oil bed in the TX Panhandle around the Permian Basin, U.S. oil is abundant securing our position globally. This support to the industry plus the oil find in TX could finally make the U.S. non-dependent on foreign oil, a vision from Presidents as far back as President Nixon.
As the Permian ramps up in the oil fields and the price of nat gas increases, producers are starting to scamper to secure rigs and fracking crews for 2017 proposed work. Fracking crews are getting to be scheduled 3-4 months out due to demand.
Want to hear more? Need information to position you for 2017 goals? Attend these events:
DUG – Hart Energy, Jan 24-26, 2017 David Lawrence Conference Center, Pittsburgh, PA
Upstream PA 2017, March 21, 2017 Penn Stater Conference Center, State College, PA
Utica Upstream – April 5, 2017 Walsh University Canton, OH
Utica Summit V – October 11, 2017 Walsh University, Canton, OH
Midstream PA 2017 — October 19, 2017 Penn Stater Conference Center, State College, PA
The best news in all of this is deals are being negotiated at OPEC, U.S. rigs are starting to move, plus, though not related, a peace agreement between Columbia and the FARC rebels. Who said there’s not a Santa?! Peace on Earth and Goodwill to All!
Visit www.ShaleDirectories.com frequency for more events and information