Oklahoma oilman Harold Hamm, founder of Continental Resources predicts the oil and gas market will “rebalance in the second half of 2016 and oil prices will be at $60.”
It’s what he wrote in a commentary in the Journal Record, saying the oil market has passed an inflection point and prices are up 50 percent from previous lows.
“As oil demand increases 1.3 million barrels per day, the oversupply will be gone within the year,” wrote Hamm. “China and India are driving demand up further—through both consumption and strategic stockpile building.”
And Hamm says the real challenge will be in putting oil rigs back into play, indicating the industry cannot replace supply overnight.
“Using the Bakken as an example, in order to get back to 2014 production levels within the next 18 months, the play would have to ramp up to about 140 rigs. Today, there are only about 30 rigs running in the play.”
Read full commentary in Journal Record.