SherWare Clients offer predictions for oil & gas industry

Last November I asked our clients to give me three predictions for what would happen to the oil and gas industry and economy during 2012. The following 21 predictions are a compilation of the most popular prediction topics our clients sent in.

We will follow these predictions throughout the year to see how they pan out and how accurate you guys can see the industry’s future.2012 Oil & Gas Industry Predictions

General Oil & Gas Industry

  1. The industry will be stable for 2012. You will see more of the same from 2011. There will by more shale plays, more debate about hydraulic fracturing and more regulation. – Pete Clute
  2. Growth in the Marcellus drilling will be less than the growth in Utica drilling because of the liquids/gas ration being 30:1 in value. – Mark Swisher
  3. The gas industry will grow exceedingly fast with the Marcellus shale. I’m not sure wht they will do to the little guy and his vertical wells. – Carol Watkins
  4. I predict they will allow us to drill in Alaska in 2012. – Kimberly Ann

Prices

  1. Prices will increase for the general public. A combination of turmoil in other parts of the world and the backlash from the current administration’s clampdown of our own energy independence will drive the production, delivery and therefore user end costs up. – Tonya Aiken
  2. As shale production increases, gas prices will continue to decline. Pipeline capacity may become a problem. – Holly Clemens
  3. Oil prices will continue to creep up with a possible spike when Israel takes on Iran’s nuke program. Most of the creep will be declining dollar value and flight into commodities. – Mark Swisher

Hydraulic Fracturing

  1. I don’t anticipate any significant regulation change during an election year. While there is a lot of noise about hydraulic fracturing, it is essentially the same method that has been used for years. Some states may implement tighter controls or regulations, but most states will allow it to continue as is. It will ultimately be a state by state issue. – Guthrie Chamberlain
  2. Frac technology will contine to improve and also prove that it is NOT a danger to the environment. – Don Lindberg
  3. The hydraulic fracturing debate will continue. I don’t think a law will pass banning the practice, but it might be met with some debate on the topic of water conservation. We might see some new ideas and industries created to clean and reuse the water. – Tonya Aiken

Alternative Energy

  1. Most green energy initiatives will remain cost prohibited and an impractical alternative to current energy supplies. This will not change anytime soon as newer technologies in the exploration and extraction of current oil and gas supplies will allow the use of fields that were not previously cost effective. This is why the Bakken and Marcellus are available today and will play a significant role in the US energy supplies. – Guthrie Chamberlain
  2. Despite pushback from the liberals/environmentalists, there will be movement to establish more infrastruction for natural gas vehicles. – Don Lindberg

Miscellaneous Predictions

  1. Offshore drilling permits won’t increase as much as we’d like. Obama will be trying to appease the Democrats so he can be re-elected. – Pat Johnson
  2. The Bakken fields will produce as expected but the frenzy to drill will slow down and level off. – Juli Pierce
  3. The U.S. will continue to NOT have an effective energy policy by the end of 2012. – Kathy Pritchard
  4. Texas leads the nation in oil production, representing almost 50 percent. I predict this number will fall in 2012 because of the Bakken fields and Marcellus shale. – TJ Hunter
  5. Conventional drilling will slow to a record low number of wells due to gas prices and the Utica Shale frenzy. – Mark Sparr
  6. The regulations will force small independents out of business as only the huge companies will be able to comply. – Mark Stephenson

Ohio Oil & Gas Industry

  1. Despite continuing misplaced criticism of the industry and hydraulic fracturing, Ohio’s governor and ODNR will allow the industry to steadily improve our economy. The eastern half of the state will continue to benefit even though it might not be part of the media storyline. – Holly Clemens
  2. The Utica Shale will cause unprecedented hype and will commence the beginning of the end of the local oil and gas producer. – Tom Csapo
  3. Utica Shale exploration and development will dramatically increase in both the wet gas and oil areas of the state. – Ed Mack

What do you think about their predictions? Are there any others you would add about the industry now that you’ve seen how the first four months have played out?


Source: SherWare Blog

 

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