Oil Prices To Double By End Of 2016, OPEC A Nobody
Oil Prices To Double By End Of 2016, OPEC A Nobody
There’s a bit of hope for the oilfield. Some encouraging words are swirling throughout the oilfield community, news has broken from the main man himself Harold Hamm. The CEO of the Energy company Continental Resources is calling for the price of oil to double by the end of the year. Hamm says prices will climb up into the $60 range by the end of the year, and he’s not the only guy that agrees, T. Boone Pickens is saying the same thing.
Hamm told the Wall Street Journal he’s quite certain oil will rebound this year. He also went on to say OPEC (Saudi’s) made a monumental mistake by continuing to pump oil at such a fast pace. In the end, the blame lies on OPEC for crashing the oil price. The Saudi’s are also likely to be one of the main reasons the 40 year ban on oil exports ended. This is all backfiring right in OPEC’s face, and in the end when things get back to normal OPEC will have lost its power in controlling the oil market. No longer will OPEC be able to hold oilfield companies and workers’ jobs hostage fueled by shear greed. OPEC will crumble into the grave it dug. A shear thing of beauty, tah tah OPEC.
A LOOK AT OIL PRICES FROM THEN AND NOW
It was shortly after 2009 when things started hitting full swing. Drilling rigs were operating at record pace, with companies hiring pretty much anybody that had a pulse. The trickle down effect from the oil activity brought new businesses into towns overnight, creating thousands of jobs. With the all the new jobs opening up it was a job seekers market, you could get hired for whatever pay you wanted, in any industry. At one point Walmart in Williston, North Dakota was paying people more than $20/hr, and was also the staging ground for new people arriving by the dozens overnight in search of that $100k job. Campers were aligned all throughout the parking lot, which transformed the sleepy little town of Williston, North Dakota into a breeding ground for workers. They could find work right there, or head north across the border into Canada where jobs were in also in high demand. The same was true for a little town in Texas. The town of Midland, Texas went from normal to people setting up tents by the dozen overnight. Hundreds were coming to town by the week. Texas offered a little bit better weather, but the jobs payed a little less. A fair trade for the brutal winter conditions that take place in the winter up north.
Over the last year or so the price of oil has fallen nearly 70% overall. When things were firing on all cylinders we were seeing prices hovering around $140 a barrel, a time I never felt better about paying $5 a gallon for gas. (Give the post a share if you support oilfield workers and don’t care how much you have to pay at the pump, as long as they have jobs). Now we’re seeing oil bouncing up and down in the $30 range and gas at the pump is well below $2 a gallon. Every time I fill up I feel guilty for paying this little, as it reflects the damage that has been inflicted upon all the workers out in the patch. Pain is only temporary, and so is the speed bump in the oilfield. We will get everybody back to work, that’s a fact jack.
HOW THE PRICES OF OIL WILL RECOVER
The price of oil will even itself out. It’s driven by supply and demand. At the current moment we are simply over supplied, nobody expected shale operators to crack the code and figure out how to get all this oil out of the formations. The oil companies have fine tuned the process, and are improving their methods with every new well they drill. A well that once cost $12 million to drill now costs just half that, and will only continue to get more affordable as companies streamline the art of fracking.
Find yourself an oil job by clicking here.
Oil production numbers are slowly dropping, helping chip away at current reserves. The market is going to even itself out, bridging the gap of supply and demand. Right now we’re way overstocked on crude oil. Operators throughout the course of 2016 are essentially going to chew up the 1.5million barrels of excess oil per day when all said and done. Once the oversupply gets drawn down, markets will stabilize themselves.
With the lifting of the oil export ban we’re going to see a lot of investing in North America by oil companies. There’s going to be less importing and more exporting. Once operators are able to move crude oil easily via pipeline to storage, exports will become more of the normal. There is a massive market for our oil as we now know. Not only is there a market to export our crude oil, there will be a slue of new refineries coming online in the future to process our own oil.
Each oil formation in North America is fully capable of setting up its own refinery. The amount of oil in place gives companies the green light to bring in the infrastructure needed to handle everything from point A to point B. The trickle down effect will result in a hiring boom not only in the oilfield directly, but also other areas such as refineries. Many of these jobs will be entry-level that offer pay you just can’t find anywhere else.
]Yes the work may be a bit demanding, but once you see that first paycheck you’ll understand the value of a dollar. Now is not the time to give up on the oilfield. The boom will be back, Harold Hamm says this time it will be even bigger. Freshen up your resume and be ready when the time comes. To get started now, submit your resume now and let the recruiters come to you.
HILLARY IS COMING FOR YOUR OIL JOB CLICK HERE TO READ MORE! SHARE THIS WITH YOUR FRIENDS IN THE OILFIELD!
2 Responses to “Oil Prices To Double By End Of 2016, OPEC A Nobody”
Sorry, the comment form is closed at this time.