Is this a good time to invest with oil and gas prices so low?
I spoke with Hugh Anderson of Hightower Las Vegas, a financial consulting firm. You can hear the interview here.
Some highlights:
- There are deals in stocks in the energy sector.
- Oil should stay low for at least another two years.
- The main causes for low oil prices: Saudi Arabia and US shale oil production adding supply to the market with lessening demand.
- Hugh thinks the days of the Saudis controlling the oil markets are over because of the next two points.
- Oil could stay low for longer: 2 reasons; technological advances in shale production; more countries producing shale.
- Hugh also introduced us to two new technologies on the horizon: Enhanced Oil Recovery; and Carbon Sequestration.
One thing we didn’t cover: the increased seismic activity in Texas that seems to be caused by fracking. Could this have a long-term effect? Or maybe enhanced oil recovery and carbon sequestration take a bigger role?
Any thoughts, drop them here or on my social media pages where this is posted.
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