Tuesday, October 08, 2013
North American oil production is showing no signs of slowing down and will likely continue growing even if prices fall to around $60 a barrel, more than $40 below today’s price, an analyst said at a Houston conference Tuesday.
Tony Scott, manager of oil and gas analysis for Bentek Energy, said the $100-plus price means high returns for oil companies. With companies cutting their costs and improving their production methods, their work probably will remain lucrative at far lower prices, he said.
U.S. benchmark light, sweet crude was at $104.67 in midday trading Tuesday on the New York Mercantile Exchange.
“We’ll see a slowdown at $80, but it’s not going to be a dramatic slowdown,” Scott said at the Platts Commodity Week conference held at the Hilton Americas in downtown Houston.
Scott said that production is likely to continue growing unless prices fall to as low as $60 a barrel.
“It takes really low prices to really slow this engine down,” he said.
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