Energy experts believe if crude oil prices stay above $50 per barrel for long enough, American oil companies could make a huge comeback while OPEC countries continue to squabble over production freezes.
A CNBC survey of oil industry experts “found that most U.S. shale drilling is expected to return when oil rises to $60 or above” and 40 percent of respondents “expected most production to return when prices reach $50 to $60.”
Forty-five percent said oil needed to be above $60 a barrel for a production boom, according to CNBC’s survey, but most experts agreed it’s very unlikely OPEC member states will agree to freeze oil production this week.
CNBC reported “73 percent of the strategists, traders and analysts found 10 percent or less chance that OPEC would come to an agreement on freezing production this week.” OPEC members and Russia failed to agree to production cuts in April.
But Russia and Saudi Arabia, OPEC’s largest member, may not have to wait too long before oil prices rebound slightly from a low of about $30 per barrel earlier this year. Now, crude sells for about $50 per barrel.