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ABSTRACT OF PRESENTATION

‘Peak Oil’ and the $500 oil price forecast of some “energy pundits” are still fresh memories to us. Only five years later, the media is fixated on “Saudi America” and the vast supply of the dark stuff that some say is going to lead to an oil price collapse.

 Herewith, we are taking the time to peer into our crystal ball and lay out the supply and demand economics for hydrocarbons from 2013 through 2017. The world is going through a revolutionary change dictated by the shale boom in the United States and technology adaptations learned from shale drilling to geological structures previously thought to have been uneconomic.

 The overabundance of natural gas and natural gas liquids has led to a severe cratering of natural gas prices on the one hand, but has set in motion a variety of longer-term demand drivers on the other. The emergence of new demand is moving slowly, and although we would like to take the quixotic viewpoint that lower priced fuel sources will create an industrial renaissance in the US, we are faced with uncertainties surrounding healthcare cost and corporate tax rates that will alter project economics when compared with international options.

 On the oil front, fears that the oil boom in the US will create global oversupply causing a collapse in the price of the liquid gold are at the forefront of investors’ concerns. We have worked through the supply and demand drivers of natural gas, ethane, propane, butane, C5+ and crude oil over the next half-decade, along with the services required to achieve our forecasts, as will be shown in this presentation.

Location: PETROLEUM CLUB, 43rd floor, EXXONMOBIL Building
800 BELL STREET
Houston , Texas 77002