01-21-2015, 10:08 AM
Interesting comments from Ross Perot Jr, on state of shale production and oil market in general.
He predicts that crude oil prices could go below $40 per barrel, which would shut down 20% to 30% of U.S. shale industry as the declining price makes production too expensive. "I think the world will be shocked how quickly we [shut down production] within Texas," he told CNN...........
But it's not all doom and gloom, according to Perot.
He predicts oil prices will eventually bounce back to about $70 to $80 per barrel over the next two years.
"Things will get back to equilibrium," he told CNN. "The great oil man will continue to move forward ... It's a wonderful time for veteran investors to jump back into the U.S. oil patch."
CNN Money article
I think that a buy of most any sound company in the energy patch is destined to be a big winner in the 2-3 year time frame. The XOM's of the world are going away no time soon! Perhaps better prices will arrive in April/May so will be keeping some powder dry, just in case.
He predicts that crude oil prices could go below $40 per barrel, which would shut down 20% to 30% of U.S. shale industry as the declining price makes production too expensive. "I think the world will be shocked how quickly we [shut down production] within Texas," he told CNN...........
But it's not all doom and gloom, according to Perot.
He predicts oil prices will eventually bounce back to about $70 to $80 per barrel over the next two years.
"Things will get back to equilibrium," he told CNN. "The great oil man will continue to move forward ... It's a wonderful time for veteran investors to jump back into the U.S. oil patch."
CNN Money article
I think that a buy of most any sound company in the energy patch is destined to be a big winner in the 2-3 year time frame. The XOM's of the world are going away no time soon! Perhaps better prices will arrive in April/May so will be keeping some powder dry, just in case.
Alex