Keith Schaefer: Expect Oil M&A Activity in Q3, Q4 2015

Energy Investing
Oil and Gas Investing

Keith Schaefer spoke to Resource Investing News at VRIC about a variety of topics, including the ongoing glut in the oil market and what he thinks the future holds for major and junior oil companies. He also touched on LNG in British Columbia.

Resource Investing News was able to catch up with Keith Schaefer, publisher of the Oil & Gas Investments Bulletin, at Cambridge House International’s recent 2015 Vancouver Resource Investment Conference.

In the interview below, Schaefer touches on a variety of topics, including the reasons behind the ongoing glut in oil market and what he thinks the future holds for major and junior oil companies. “Juniors are going to have a very tough time,” he said, adding, “they need to grow to keep their stock price going … anything under $70, $80 oil — very tough for them to grow, very, very tough, particularly on the shale side.” As a result, he anticipates “a lot of M&A activity” in the last half of 2015 as companies re-evaluate where they are and realize the importance of critical mass.

To close, he discusses LNG in British Columbia, noting, “I don’t think the window of opportunity for LNG is ever going to pass … it’s a cyclical business. Now, at this point in the cycle, oil and gas actually have a pretty similar price on a BTU basis, with lots of new supply coming onstream. So they might have missed the window on this cycle, but I think the market’s going to be surprised at what happens here.”

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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