Drilling advances ///
Oh, where will it end? This could go on for another 20 years! Oil could be $80 within the next year or two! Sound familiar? These were the same things uttered by excitable, passionate oilmen back in 1980. I remember them well. I was sucked in like lots of other investors and put my life savings into business ventures that looked far too good to be true. Turns out, they were too good to be true.
Earlier this year, I heard projections of oil reaching $120/bbl within six years. Recently, low gasoline stocks pushed oil prices over $70/bbl. Current thinking is that drilling activity and rig counts will remain at the high level they have occupied for the past three years, based on prices in excess of $60/bbl. Economics for long-term projects, formerly based on $30-$35/bbl, are now being recalculated at $45-$55/bbl, because of the high price plateau over the last few years.
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