2017 Oilweek Outlook Survey Shows Industry Expecting Recovery That Is More Tortoise Than Hare

Battered and bruised by over two years of low commodity prices, Canada’s energy industry isn’t expecting a return to the good times before the late 2014 oil price crash anytime soon, according to Oilweek’s 2017 Oil & Gas Industry Outlook Survey.

While there is some expectation of higher oil and gas prices in 2017, there remains a great deal of uncertainty about where the industry is headed as the year unfolds.

Around half of survey respondents expect oil prices to climb to an average US$50–$60/bbl range in 2017. A third expect prices to average $40–$50/bbl.

oil industry newsA little over 50 per cent of respondents expect gas prices to average US$2–$3/mmbtu in 2017. A third of respondents were more optimistic, expecting prices in the $3–$4 range.

Count Rick Grafton, founder and chief executive officer of Grafton Asset Management, among these natural gas optimists.

Grafton told a CFA Society Calgary outlook breakfast in late October those expecting gas prices to remain low could be in for a surprise this winter. “I often hear that commentary: ‘Natural gas prices will never go up—there’s just too much cheap supply,’” said Grafton. “I can remember multiple times in my career that experts told me that prices won’t go back up. And they were always wrong.”

While the headlines have focused on the oil markets, Grafton says gas markets are “the most interesting and under-appreciated story—especially since our basin is 75 per cent natural gas.”

Read the full article at Oilweek and jwnenergy.com by clicking this link ««

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