• 4 minutes Natural gas is crushing wind and solar power
  • 7 minutes OPEC and Russia could discuss emergency cuts
  • 10 minutes Peak Shale Will Send Oil Prices Sky High
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 2 mins On Venezuela
  • 1 hour CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 1 hour "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 1 day Cheap natural gas is making it very hard to go green
  • 5 hours The Great Recession recovery wasn't powered by Obama; it was oil and gas
  • 7 hours Gold.
  • 1 min WTI are we seeing the perfect storm
  • 10 hours Engineering, Politics and Political Correctness from Down Under
  • 20 hours I Love Hills
  • 1 day Oil and gas producers fire back at Democratic presidential candidates.
  • 5 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 1 day Investments worthy in versatile and clean natural gas

Companies Best-Positioned For An Oil Price Rebound

The U.S. oil and gas rig count continues to fall – having plummeted by 74 rigs for the week ending on January 16 – in a clear sign that the contraction will likely persist for some time.

A fresh wave of layoffs and spending cuts were announced this past week. Baker Hughes (NYSE: BHI) said that it would slash 7,000 from its payrolls, for example.

Oil Prices Go Down…And Back Up

As rigs and roughnecks disappear from the oil patch, production will decline. However, it will not decline right away – there tends to be several month lag period between a reduced rig count and slower production. That period of time could be about two to five months, meaning U.S. oil production could begin to feel the pinch in second quarter.

There are a series of other signs that would indicate that oil prices are bottoming out. Although one data point doesn’t confirm a trend, U.S. oil production fell by 6,000 barrels per day during the second week of January. More cutbacks will eventually correct a supply glut.

OPEC’s Secretary-General spoke at the Davos World Economic Forum and said that he thinks prices will stabilize in the $45 to $50 range and then rebound. OPEC is also predicting that low oil prices will stoke demand, which should send prices back up. Early signs from the U.S. reaffirm this view – U.S. gasoline demand is at an all-time high.

Capitalizing on the Rebound

There is a huge opportunity for investors…




Oilprice - The No. 1 Source for Oil & Energy News