12.07.2016 - When Will the Oil Price Return to $100?
Instead of a return to high long-term prices, the industry needs to find the oil price that can keep a lid on US shale activity, which analysts think will be $60 per barrel. The most pressing question on the minds of energy investors: How long will it take for the industry to work through the current period of oversupply and rebalance itself? The answer: Not anytime soon. Current supply imbalances are such that oil production as of today is effectively running two years ahead of demand. Thanks to ongoing productivity improvements, cost reductions, and slowing decline rates, US shale’s cost-competitive growth potential is much greater than the market currently realizes...............................................Full Article: Source
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