Goldman Sachs (NYSE:GS) estimated that that Crude Oil will fall to $70 per barrel in 2015 as part of a long-term decline in the commodity. The U.S. Energy Information Administration that U.S. gasoline prices would average just $2.94 per gallon next year, down from $3.39 in 2014.
Oil could plummet to $35 a barrel in 2015 said Tom Kloza founder of Oil Price Information Services
"When you look at the second half of 2015, that's when you see oil beginning to dwarf demand by about a million, a million and a half barrels a day," he said. "Thirty-five dollars is a possibility if they don't get an agreement next spring because that's when the oil really starts to build and you can have a billion barrels of oil with really no place to put it." Tom Kloza said.
Albanian Minerals President and CEO Sahit Muja said, "Globally there's so much oil produced in 2014, that the world has no demand for all of it. The oil prices will continue to tumble in 2015. Global oil prices are falling because of huge changes on oil supply and world demand. The oil demand has slowed because China, Europe and Japan's economy is not growing as expected also U.S. has increased oil domestic supply over 50 percent".
Sahit Muja explained that; United States has made an astounding shale oil and gas revolution in technology with hydraulic fracturing and horizontal drilling, thanks to these inventions U.S. has become the number one global producer of Natural Gas. The oil production in Oklahoma, Texas and North Dakota has doubled in just five years.The economy in China, India, Brazil, European Union, U.S, Japan is not growing as much as hoped. The global oil production is increased and the consumption has decreased.We have the worlds largest energy reserves. It is time to embrace change and do what works and what is profitable. Investing and producing more domestic energy would create good jobs and bolster U.S. economy .
"The US energy independence is very achievable when you factor in all sources. Petroleum, shale oil, natural gas, methane hydrates, coal, solar, wind, hydropower, tides, nuclear power, bio-diesel and geothermal heat". Sahit Muja said. Albanian Minerals CEO said: For so many years the oil prices is manipulated by speculators on the Wall Street and other trading organisation. The International Monetary Fund (IMF) lowered its global economic growth outlook to 3.5 percent in 2014 and 4% in 2015. We've seen one excuse after another on skyrocketing oil prices. Saudi Arabia has the world's cheapest cost for oil extraction, the costs of extraction is an average $3 a barrel. The global oil extraction cost an average $8 a barrel to pump. In Venezuela, Azerbaijan and Iraq the cost to pump the oil is about $5 a barrel. Why oil prices rose near 100% after economic crises ?
"The speculation is the main factor on skyrocketing oil prices". Mr. Muja said. Mr. Muja added that the price of oil has been increasing from an average $45 a barrel when President Obama took office to $73.85 today. The oil companies, oil traders, banks and financial institutions with oil invested in oil assets must love President Obama's energy policy the Euro-Zone economic crisis the unrest in Arab countries , Russia, Ukraine problems and the problems with Iran. Running out of Oil? No!, No. The world has so much oil, natural gas, coal feared running out of it is not valid. Today OPEC oil producers have reached a consensus not to cut oil output. "Oil production doesn't show any signs of slowing. I expect oil prices to fall to $50 a barrel in 2015.
U.S. Government Accountability Office estimated that if half of the oil bound up in the rock of the Green River Formation could be recovered it would be equal to the entire world's proven oil reserves. In recent years thanks to new technologies, such as three-dimensional seismic imaging, horizontal drilling and the ability to drill in ever-greater water depths, the oil and natural gas industry has so far managed to raise its proven reserves and it's output .
Sahit Muja said, "Global horizontal drilling techniques and hydraulic fracturing have allowed the development of oil and natural gas from shale formations. Shale oil production has increased in unprecedented levels.A $50 for barrel of oil is a fair price, oil extraction can cost an average $8 a barrel to pump".