On one day, we have three convincing pieces of evidence that the North Sea’s 2016 losses were a temporary blip.
I’ve already reported on the massive finds west of Shetland and booming demand from Asia:
Estimates of Scotland’s oil reserves West of Shetland now massively increased to around 8 billion barrels! ‘A super-resource now on the cards.’
Scottish oil in new and much increased demand from Asia ‘like never before!’
Now, we have three reports released on the same day showing the industry’s growing confidence.
First, from the USA, prices climbed to $52 per barrel as:
‘Oil investors renewed their enthusiasm as a proposal by the world’s two biggest crude producers to extend output curbs into 2018 boosted confidence that other countries will follow suit.’
Second, The #Oil17: New World Order survey suggests some recovery in 2017 and the majority of their respondents expecting greater recovery in 2018 as prices head up to $70 per barrel. This reinforces the estimates made earlier in March when ‘data and analytics firm’, McKinsey, predicted that oil prices will rebalance at $60 to $70 per barrel.
Finally, Aberdeen and Grampian Chamber of Commerce (AGCC)’s latest study of the mood of the offshore sector has found
- 52% of operators believe prices have bottomed out and will begin to rise.
- 38% of contractors, up from 12%, are more confident than they were six months ago
Though good to see, I’d put these predictions at the conservative end of those being made elsewhere, months ago:
‘Global demand for oil could outdo the 10-year average in 2017.’ Why the SNP Government, the sector and hedge funds are all optimistic.