Oil& Gas Execs Say Price of Crude to Drop by Year's End

A new survey of oil and gas executives finds the price of oil will drop below a hundred dollars a barrel by the end of the year. It also shows an increase in foreign and domestic investment as the desire for US energy security intensifies. Pat Hernandez has more.
The survey was done by KPMG, a global network of professional firms providing audit, tax and advisory services. It polled over 370 financial executives from oil and gas companies. Bill Kimble, executive director of KPMG's Global Energy Institute, said 55-percent of respondents thought the price of a barrel of crude will drop by the end of the year.

"This survey, what the executives said is that, by the close of the year, the majority of them believe the price of crude will be just below a hundred dollars."

While 44% felt that prices would peak by the end of the year, 39% thought they would not peak until after 2010. Kimble says the survey found the expectation of increased investment by US energy companies due to concerns about energy security:

"We also asked them, what do you think would be the best to enhance energy security? 43 percent said we need to open ANWAR, which is the Arctic National Wildlife Reserve to drilling, and another 28-percent said we need to open up drilling in the Rocky Mountain region."

Kimble says the oil industry shouldn't get the blame for rising prices and that today's dynamics point to individuals and companies investing in commodities.

Pat Hernandez. KUHF- Houston Public Radio News.

Pat Hernandez

Reporter

Pat Hernandez is a general assignments reporter who joined the KUHF news staff in February of 2008...