The fundamentals of oil have never been better than now, according to Marshall Adkins, Raymond James managing director who serves as head of the firm’s energy investment banking practice in Houston.
“As OPEC keeps oil off the market and the U.S. and others struggle to grow production, we are going to be behind the curve and I think that’s what’s going to lend to a multiyear support for crude in the $75-plus range,” Adkins told Hart Energy Editorial Director Len Vermillion.
Adkins, who believes the oil market is meaningfully undersupplied right now, spoke to Hart Energy following his presentation on WTI supply, demand and price at the DUG Permian and Eagle Ford conference and exhibition in Fort Worth, Texas, on July 13.
During this interview, Adkins shares his outlook on demand, storage and why he thinks OPEC is nearing the point where the group of oil-producing countries will max out output.
Jump to a topic:
- Oil outlook (0:30)
- How much will demand increase? (1:20)
- OPEC and Saudi Arabia (2:10)
- U.S. shale (4:30)
- Storage (5:40)
- What’s different this time? (6:55)
Recommended Reading
The EPC Market Keeps Its Head Above Water
2024-08-06 - While offshore investments are rising, particularly in deepwater fields, challenges persist due to project delays and inflation, according to Westwood analysis.
As Oil Production Scales the Heights, Texas E&P Jobs Disappear —TXOGA
2024-08-06 - As operational efficiencies give E&Ps the ability to produce more oil with fewer rigs, Texas employment in the oil patch has fallen five out of the first six months of 2024.
Mexico’s Zama Drama Eases, but Not Over for Talos, Other IOCs
2024-06-26 - Houston-based Talos Energy and its Block 7 consortium partners could make FID on the Zama field development sometime in the next year. But despite the importance placed on the project to secure energy security for Mexico, the consortium continues to run into headwinds.
OPEC Gets Updated Plans From Iraq, Kazakhstan on Overproduction Compensation
2024-08-22 - OPEC and other producers including Russia, known as OPEC+, have implemented a series of output cuts since late 2022 to support the market.
How Liberty Rolls: Making Electricity, Using NatGas to Fuel the Oilfield
2024-08-22 - Liberty Energy CEO Chris Wright said the company is investing in keeping its frac fleet steady as most competitors weather a downturn in oil and gas activity.