An outlook on the price of crude oil amid the fallen value

first_imgMark Salkeld is President of the Calgary based Petroleum Services Association of Canada and he believes there’s a new norm in place, and $100.00 a barrel oil is an endangered species.In fact, he hesitantly says we’re not likely to see $70.00 a barrel again before next year.“I hesitated a little bit only because I have been attending so many different presentations from banks, from investment groups; from people that are smart on this kind of stuff,” says Salkeld. “And the one constancy is nobody knows for sure.”- Advertisement -Salkeld says some industry insiders are hopeful things will turn around this summer.“I’m obviously hopeful that he’s right, but I’ve been hearing too much about 2015 as being a write-off – which just about makes sense because everything is ramped down and it takes so long to get ramped back up again,” Salkeld explains.He says it’s also rumoured that Middle Eastern oil producers have secured enough of a nest egg that they can continue selling their crude oil at the current price for at least the next two years.Advertisement He was somewhat more optimistic about B.C. – citing potential LNG development.“We’ve had a lull with all the press on LNG, but I can’t help thinks it’s a calm before the storm.”Salkeld says he’s optimistic that LNG development will commence in the summer of 2015.last_img

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