Observations on Oil and Natural Gas Price Swings

As you know, I’m relatively new to the oil and gas industry. We started Shale Directories in November 2009. This sharp price decline in oil is the first one I experienced since we started Shale Directories. We saw a deep price decline in natural gas in 2012 when it went under $2.00. It has recovered somewhat, but seems to be locked in a trading range from $2.65 to $3.00. In fact, natural gas has weathered the current declines pretty well. In looking at the current state of the oil and gas industry, here are some of my thoughts: • The price of oil. It dipped below $40 this week, but seems to be rebounding. The question is where is the new “norm.” I’ve heard $60 a barrel is the new $100 a barrel. How long can the Saudis continue to keep pumping to keep prices depressed? It may not too much longer. Here are some observations: o The Saudis have issued bonds recently for the first time in since 2007 and more bond issues could be in the future. (Shale Directories, 8/15/15) o Saudi
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