The year 2007 surged ahead on a number of levels and set many new records. The Dow blasted through 13,000 and drove on to 14,000. Natural gas remained more or less flat relative to its volatility in 2006, but crude continued to remain historically high with recent trade orders in the high $90s/bbl. Oil may or may not hit $100, but the Bulls who forecast anything close to this picture still get a gold star. Here’s the question: who wants to bet their paycheck on where it goes in 2008 and beyond? There doesn’t appear to be much slack in the world economy at this point, but demand is still leading supply. Will this lead to a pullback, recession, higher prices, or a combination of those?
The cost of finding, producing and delivering energy increases every quarter, but when translated into higher prices at the pump, expect accusations of price gouging, windfall profits, and conspiracy theories from the public and some politicians. Those are reminders that much of Congress, government agencies and a majority of citizens do not understand the complex journey of hydrocarbons from the reservoir to the pump. Shudder at the thought of the public relations and political pounding for the industry as the cost of gasoline continues the burn toward $4/gallon, and beyond, in America. And as the Congressional majority is unfriendly to oil and gas, government observers predict the negative sentiment will be compounded if a different party moves into the White House.
We are absolutely at a fork in the road with the energy requirements of this nation. At a time of phenomenal technological progress and unprecedented growth in onshore and offshore markets, leaders in the contract drilling business, and indeed throughout the entire energy industry, face crucial decisions.
World Oil Magazine
News
Discussions
Resources
Members
The year 2007 surged ahead on a number of levels and set many new records. The Dow blasted through 13,000 and drove on to 14,000. Natural gas remained more or less flat relative to its volatility in 2006, but crude continued to remain historically high with recent trade orders in the high $90s/bbl. Oil may or may not hit $100, but the Bulls who forecast anything close to this picture still get a gold star. Here’s the question: who wants to bet their paycheck on where it goes in 2008 and beyond? There doesn’t appear to be much slack in the world economy at this point, but demand is still leading supply. Will this lead to a pullback, recession, higher prices, or a combination of those?
