Sixty dollar oil by the end of the year? It’s what Oklahoma oilman Harold Hamm, chairman of Continental Resources has predicted in an interview with the Wall Street Journal. He made his prediction on Wednesday as oil prices fell below $30 a barrel, their lowest level in 12 years.
Hamm used the interview to state that Saudi Arabia made a monumental mistake in continuing to pump oil at a fast pace, according to the Journal. He said it no doubt contributed to the move by the U.S. government to lift its 40-year ban on oil exports.
“We couldn’t have gotten the export ban lifted without them doing what they did to us last year.”
What could the export mean to OPEC? Maybe make it “almost a nonentity” said Hamm who believes as the U.S. is on the verge of gaining global market share, OPEC will lose its ability to dictate market prices.
Hamm also believes the exports of U.S. oil could solve the problem of lack of storage.
“We’re heading toward a short supply situation unfortunately,” said Hamm. “That’s going to get very concerning in the latter part of the year.”
What it could lead to is a decrease in future oil supplies because the dropping oil prices have forced U.S. energy firms to cut their production and to trim the number of rigs in the field. Once that happens, the turnaround won’t happen overnight.
Read entire article at Wall Street Journal.