Oil prices: What goes down can go up, API economist says

American_Petroleum_Institute_logoCathy Proctor Reporter – Denver Business Journal – April 22, 2015

The factors that led to the bust in the nation’s oil and gas industry could just as easily switch, sending oil prices upward again, according to John Felmy, the chief economist for the American Petroleum Institute, a Washington, D.C.-based national trade group representing the oil and natural gas industry.

Felmy was in Denver on Wednesday to make a presentation to state legislators about the downturn in the oil and gas industry due to the slide in commodity prices.

In an interview with the Denver Business Journal, Felmy listed several factors that led to the downturn, with the biggest one being that the United State’s oil industry produced more and more oil during the last five years, taking the place of other suppliers on the international market.

But when those other countries, including Sudan, Libya, and Iraq, started pumping out more oil last summer, the international market was glutted with too much oil and not enough demand, he said.

Continue reading story at The Denver Business Journal

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