In a recent poll, institutional investors and senior industry executives indicated optimism about crude oil and natural gas prices. RBC Capital Markets conducted the survey at its 2014 Global Energy and Power Conference in New York, according to a press release. A total of 80 professionals in the oil, gas and energy sectors were polled, the press release said. The number of investors polled was not indicated, but 550 institutional investors were at the conference, according to the release.
Of the investors and professionals polled, 76% said that the price of crude oil would stay at or above $100, while 74% of investors said that natural gas prices would either stay at their current level or increase over the next year.
Respondents’ views on commodity prices “translates into a bullish view” on exploration and production (E&P) company stocks, as well as oilfield service company stocks, according to the press release. Of respondents in the industry’s subsectors, 61% said that E&P and service companies would have “the most investment upside” by the end of the year.
“Given the optimism relating to crude oil and natural gas, it naturally follows that investors view the oilfield services and E&P sectors as outperformers through 2014,” said Kurt Hallead, the co-head of Global Energy Research for RBC Capital Markets.
“Our global energy team expects North American onshore shale drilling to be the primary driver for revenue and earnings growth for oilfield services and E&P companies into 2015,” he added.
The ways in which investors will approach the energy sector might depend on the “resolution of issues,” including the Keystone XL Pipeline and the debate over exporting crude oil, according to the release. Of those polled, about 45% said Keystone would be approved post-2017, while 41% said it would be approved between 2015 and 2016.
Regarding the export issue, 74% said crude oil exports would “eventually be permitted.” A total of 31% expected this between 2015 and 2016, while 43% expected it no earlier than 2017.
“The economic benefits for crude oil exports make sense, whether it be GDP growth, jobs, trade balances or federal or state revenue streams,” Hallead said.
“The template is in place given the approval of LNG exports, and we ultimately think that crude exports will be permitted,” he added.
Toronto-based investment bank RBC Capital Markets is part of the Royal Bank of Canada.
Recommended Reading
Athabasca Oil, Cenovus Energy Close Deal Creating Duvernay Pureplay
2024-02-08 - Athabasca Oil and Cenovus Energy plan to ramp up production from about 2,000 boe/d to 6,000 boe/d by 2025.
CEO: EQT Positioned to Meet Demand of Power-guzzling AI Data Centers
2024-04-01 - EQT Corp.’s Toby Rice said demand for AI could exceed the power demand required to meet U.S. residential demand and jump 20% by 2030, in this Hart Energy Exclusive interview.
‘Monster’ Gas: Aethon’s 16,000-foot Dive in Haynesville West
2024-04-09 - Aethon Energy’s COO described challenges in the far western Haynesville stepout, while other operators opened their books on the latest in the legacy Haynesville at Hart Energy’s DUG GAS+ Conference and Expo in Shreveport, Louisiana.
Silver Hill Energy Enters Bakken with Liberty Resources Acquisition
2024-01-31 - Silver Hill Energy Partners LP is getting into the Bakken in North Dakota through the acquisition of Liberty Resources II.
Aethon’s Far Western Haynesville: Three Wells, 17.5 Bcf and Still Roaring
2024-02-05 - Aethon’s wells show no signs of flatlining—and neither are Comstock Resources’ tests, one of which has already reached nearly 50% of its previously estimated EUR.