Colver Technologies: Oil dipped below $50 a barrel for the first time in 5 years as concerns over a glut in supply continue.
Despite record bearishness on oil prices, Colver Technologies believes prices will stabilize at between $65 and $75 a barrel by the end of 2015. The firm’s prediction came even as oil prices dipped below the psychological $50 a barrel level for the first time in 5 years and more gloomy news flowed from emerging markets raising fears over a steeper decline in economic growth than previously expected.
Gus Stuyvesant, Chief Operating Officer at Colver Technologies said, “You don’t have to be an economist to know that if there’s less demand for oil and the producers are still flooding the market with supply, the price has to slump. Having said that, we still think the selloff has been a little overdone but the way the central banks are interfering with normal market forces, we think the price will be back up at the $70 a barrel mark by mid-2015.”
The small-scale GTL service company expects prices to begin rising as exploration and production falls as a natural reaction to reduced profitability but says conditions are likely to become particularly painful for investors and those with newly-created jobs in the fracking industry.
“A lot of the jobs created in the industry over the last few years have come after record levels of investment and massive capital expenditure. If producers can’t sell oil at higher prices, a lot of those workers are going to be laid off,” said Stuyvesant.
Colver Technologies maintains its view that OPEC heavyweights Saudi Arabia and Kuwait are best equipped to sit out a long oil price war and cautions that US producers hoping to take advantage of a recent symbolic relaxation of the ban on exports of US oil won’t be able to sell enough of their production to be profitable even with oil at $60 a barrel.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning
China
contact@colvertech.com
http://www.colvertech.com
862422599383