Goldman Sachs: The Bullish Case For Oil

The rapidly heating up situation in Syria has pushed Brent crude prices to US$72 a barrel, something that Goldman Sachs had predicted on Thursday. The investment bank’s stance on commodities in general is very upbeat because of the Middle East situation as well as the latest round of U.S. sanctions against Russia.

“With low cross-asset correlations, increasing inflationary risks, a positive carry and the potential for oil supply disruptions in the Middle East, the strategic case for owning commodities has rarely been stronger,” Goldman analysts said, reiterating their “overweight” stance on commodities.

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Texas Oil and Gas Industry Paid More than $11 Billion in Taxes and Royalties in 2017

AUSTIN – According to just-released data from the Texas Oil & Gas Association (TXOGA), the Texas oil and natural gas industry paid just over $11 billion in state and local taxes and state royalties in fiscal year 2017, a solid increase from the $9.4 billion paid in fiscal year 2016.

“The remarkable and sustained recovery of the Texas oil and natural gas industry is benefitting our state and local economies, providing the equivalent of $30 million a day for our schools, universities, roads and first responders,” said Todd Staples, president of TXOGA.  “What’s happening in Texas is the primary reason that our nation is a global power broker.”

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Saudi Arabia Signals Ambition for $80 Oil Price

Saudi Arabia wants to get oil prices near $80 a barrel to pay for the government’s crowded policy agenda and support the valuation of state energy giant Aramco before an initial public offering.

In conversations with OPEC delegates and oil market participants, Saudi officials had been careful to avoid pinpointing an exact price target. Yet people who have spoken to them said the inescapable conclusion from the conversations was that Riyadh is aiming for $80.

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Oil Prices Poised To Rise As Cycle Comes To An End

Each month, I publish reports on ten to fifteen publicly traded upstream oil & gas companies. Part of each report is my estimation of what the company would sell for in a negotiated transaction. I’ve been doing this for almost twenty years and during that time there have been several oil price cycles. The one that started in mid-2014 includes one of the most severe declines in crude oil prices in the last century. It has lasted much longer than the average cycle, which is about two years.

I have been working in the oil & gas industry for more than 40 years, so I have lived through several boom and bust periods for upstream companies. Here are a few observations:

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