We are attending the Nortstar Private Equity Fast Pitch conference. The keynote speaker was Marshall Adkins with Raymond James. We looked at where oil & gas prices are headed.
Where are Oil & Gas Prices Headed?
Below are the highlights:
- The fundamentals for oil prices are trending down
- Global demand is declining and supply is increasing
- Oil prices may decline to $80-$85 bbls
- Gas prices should increase to )4-$5 mcf ; less drilling for oil should result in less gas supply
- These price should occur in 2014
- Vehicle miles travelled is falling because of three trends; shrinking demographics ( Baby Boomers retiring); increased urbanization; rising Internet sales
- Therefore gasoline demand has decreased 8% over the past 5 years
Everyone else is optimistic about rising oil prices. All I know is “trees don’t grow to the sky!”
