• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Energy Market
    Energy News
    Energy Stocks
    • Energy Market
    • Energy News
    • Energy Stocks
    oil and gas investing

    Patricia Mohr Stays Positive on Oil, Expects Rise in Early 2015

    Investing News Network
    Dec. 18, 2014 03:40PM PST
    Energy Investing

    Scotiabank’s Patricia Mohr remains positive on the future of oil. She expects prices to start trending upward in the first quarter of 2015.

    As oil prices continue to crumble in the face of a sustained output glut, Patricia Mohr, Scotiabank economist and commodity market specialist, believes prices have hit the bottom and will start to rebound.

    In a report released on Thursday, Mohr states that West Texas Intermediate oil prices are below what she calls the mid-cycle break-even cost, which averages US$60 to $61 a barrel.

    “People don’t have a very good idea where production costs really lie. Sometimes they think that oil prices can move down to the lowest marginal cost, the lowest cost that a particular producer might be able to produce at. But for an industry you can’t have that happen for very long,” she said in a telephone interview.

    While break-even costs average $60 to $61 across the US and Canada, they are slightly higher in the North Dakota Bakken at $69 — which Saudi Arabia is seemingly hoping deters the fracking boom currently underway in the US.

    Oil prices will start to trend higher midway through 2015 and continue to rise, she said, as supply falls back into line with demand.

    “As oil prices continue to tick up again, company valuations and stocks will move up. And in the past few days they are up probably off the bottom,” she said, adding that now is the time for investors to get into the game as she expects prices will not go lower.

    Looking at the impact low oil prices are having globally, Mohr said Saudi Arabia’s (and by extension OPEC’s) decision to not curb output has negatively affected commodities and countries’ GDPs. Already, the sinking cost of oil is seemingly crippling Russia as its currency continues to fall and major store brands such as IKEA suspend business.

    On the flip side, she doesn’t see New York’s ban on fracking harming the flow or price of natural gas.

    “I think there’s going to be quite the big shift in the utility market in the US away from coal to natural gas and possibly some new applications for natural gas in transportation,” she said.

    She expects natural gas prices to climb in 2016 and 2017 as more liquefied natural gas projects open up along the Gulf Coast in the US, with gas rising to the $5 to $6 mark late in the decade.

     

    Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.

    Related reading: 

    Oil Outlook 2015: Rising Demand and Heavy Production to Compete

    New York State Bans Hydraulic Fracturing, Anticipates Lawsuits from Gas Companies

    gas companiesoil and gas investingrussiacanadaoil outlookliquefied natural gaspatricia mohr
    The Conversation (0)

    Go Deeper

    AI Powered

    Oil Price Gets Much-needed Boost, Nears Five-month High

    Lithium Investing

    Lithium-ion Bull: KISS

    Latest News

    Angkor Resources: Unlocking Cambodia’s Resource Potential through Energy and Minerals Assets

    Alvopetro Announces Q3 2025 Dividend of US$0.10 Per Share

    Insider Loan to Corporation

    Stallion Uranium Announces Grant of Options

    North Shore Expands Land Position at Rio Puerco

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Energy Investing Stocks

    Alvopetro Energy

    ALV:CC

    Coelacanth Energy

    CEI:CC

    Jupiter Energy

    JPR:AU

    Charbone Hydrogen

    CH:CC

    First Helium

    HELI:CA

    Source Rock Royalties

    SRR:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×