Jason Wangler in a recent interview forecast oil production price in 2015 for about $70/bbl. He thinks that the oil price will soon start to correct itself, though he couldn’t say how soon or how quick the process will be. He expects that oil price will soon get back to what is considered economically viable whether in the United States or internationally.
The $70 price is predicted because not only in the US alone but worldwide, people are trying to cut capital expenditures in a dramatic way. People are regulating cash inflows and outflows but soon, he thinks that growth will soon take place first in the US and then in other parts of the world. However, some places will still witness slowdown because of lack of investment.
For gas, US really has no problem because of too much supply. But a $4/Mcf range will be a reasonable forecast. He doesn’t think that it is too much to make this kind of prediction because of the present weather impact. He alluded to last year when the price of gas went up to $6/Mcf around February and March. However, he doesn’t think anything can trigger the rise of gas in the market this time around, banking on the willingness of gas producers to accept any price.