A recent survey conducted by KPMG finds that the majority of E&P executives feel that oil will drop below $100 by year-end. However, it was only a slight majority of the 372 of the execs who felt this way, with 55% agreeing prices would fall below the century mark and 21% who thought it would settle just above the $100 range. However, a vocal minority of 39% feel that we've yet to see peak prices, which could conceivably last until 2010. With this new higher price level, 46% said there would be more foreign investment in and acquisition of U.S. energy assets, and 18% saying it will increase significantly. Other hot button issues discussed include the two elephants in the industry's room, global warming and ethanol. About 62% believe that global warming is real, but that it's part of a natural weather cycle, with 29% believing that warming is due to human actions and 9% believing it is completely false. A quarter of respondents thought the issue should be addressed by the market, with 11% supporting government-led carbon emission reduction and 16% favoring corporate tax incentives for investment in renewable energy. Only 15% of respondents thought it would be viable to mass-produce biodiesel by 2015, and 10% felt it would be viable to produce cellulosic ethanol. Can you imagine that oil falling below $100 would be considered a relief to consumers, especially since hitting a high of that figure was such a psychological issue for Americans? –Stephen Payne, Editor, Oil and Gas Investor This Week; spayne@hartenergy.com
Recommended Reading
Talos Energy Sells CCS Business to TotalEnergies
2024-03-18 - TotalEnergies’ acquisition targets Talos Energy’s Bayou Bend project, and the French company plans to sell off the remainder of Talos’ carbon capture and sequestration portfolio in Texas and Louisiana.
CERAWeek: Exxon Mobil CEO Says Not Trying to Acquire Hess
2024-03-18 - CEO Darren Woods said Exxon Mobil is trying to secure preemption rights over Hess Corp.'s Guyana assets in its dispute with Chevron, not buy the company itself.
Emeren, Glennmont to Develop 155 MW of Battery Storage Projects
2024-03-15 - The collaboration between Emeren Group and Glennmont Partners marks a strategic move to enhance renewable energy storage capacity in the region.
Parker Wellbore, TDE Partner to ‘Revolutionize’ Well Drilling
2024-03-13 - Parker Wellbore and TDE are offering what they call the industry’s first downhole high power, high bandwidth data highway.
Phoenix Capital Group Acquires Bakken Mineral Interests
2024-01-16 - Phoenix Capital Group acquired about 600,000 net mineral acres across four states from AgWest Farm Credit.