Day: August 5, 2020

3 posts

Jerry Jones, the billionaire owner of the Dallas Cowboys, said his bet on shale gas in the southern U.S. is well placed even after prices slumped.
Domestic natural gas is down 19% this year amid a supply glut. Despite that, Jones’s Comstock Resources Inc. bought Covey Park Energy LLC in July to add operations in the Haynesville shale basin. The area is close to the coast and convenient for the export of natural gas liquids, Jones said Wednesday in an interview with Bloomberg Television.

The Haynesville is “the most efficient place in the world to have natural gas and our market is right there,” said Jones, 76. “Comstock fits and checks all the boxes. I’m excited. Consequently, I put over $1.5 billion of my personal money into this area.”

Comstock shares rose as much as 20%, their biggest intraday gain since April last year. Jones controls 75% of the company, and his fortune rose by about $100 million Wednesday to $6 billion, according to the Bloomberg Billionaires Index. He’s the 103rd-richest American. Comstock is competitive despite the challenges in the gas sector, Jones added. “The industry does not in any way dictate the promise of the individual or company in the industry,” he said. – Bloomberg.com

If you’re a fan of oil, and I expect you are seeing as how you’re reading articles on OilPrice, get ready for a positive forecast about oil prices moving higher. You’re going to like the direction this article takes. Oil prices are getting ready to rise…dramatically. We are going to move from a perception of severe surplus due to the global economic slowdown, to a reality of intermittent and localized shortages. This will be strongly evident by the 4th quarter of this year. Let me set the stage for this prediction.

In a recent OilPrice article I put forth a fairly bold theory about where the Super Majors might turn to replace lost shale production, given the oilfield, “tent-folding,” that’s underway now. To substantiate this theory I relied upon some logic based on my 40-years of experience in this business, and some general trends published by Rystad regarding the effects of underinvestment in a certain segment of the market. I now have some hard data which I will share in this article.

(Reuters) – Lower crude production due to reduced activity and OPEC+ cuts, coupled with a partial recovery in oil demand, should drive prices higher next year, Goldman Sachs Equity Research said in a note.
The Wall Street bank raised its 2021 forecast for global benchmark Brent crude LCOc1 prices to $55.63 per barrel from $52.50 earlier. The bank hiked its estimate for U.S. West Texas Intermediate (WTI) crude CLc1 to $51.38 a barrel from $48.50 previously.

“Oil production has started to decline quickly from a combination of scaleback in activity, shut-ins and core-OPEC/Russia production cuts. Demand is also beginning to recover from a low base, led by a restarting Chinese economy and inflecting transportation demand in developed market economies,” it said.

Oil prices fell on Monday, having posted their first weekly gain in four on Friday as the Organization of the Petroleum Exporting Countries, Russia and other producers, known as OPEC+, began their record output cuts. [O/R]

Brent was last trading around $25.97 at barrel, while WTI was at $18.31.