Cathy Proctor – Reporter-Denver Business Journal – May 13, 2015
The budget cuts, layoffs and office closures that have spread across Colorado’s oil and gas fields in recent months are the “collateral damage” in an international game of chicken involving the biggest energy producers on the planet, John Harpole, founder and owner of Mercator Energy LLC, told attendees at the Colorado Energy Expo on Wednesday.
And while oil prices have risen a bit in the last few weeks, Harpole said he doesn’t expect oil prices to return to the $80 per barrel for three years or more.
“We’ll see how long that’s sustained,” Harpole, a long-time Denver oil and gas expert, said of recent oil prices, which have edged into the $60 per barrel range in the last few weeks, up from $50 per barrel for much of the first quarter.
U.S. oil prices peaked in June 2014 at $107 per barrel.
“If we’re right on the idea of Saudia Arabia’s goals, we’ll see low oil prices for at least three years,” Harpole said during a talk at the Expo, which took place at the Sports Authority Field at Mile High.