Brian Bagnell of Macquarie Capital Markets has two caveats for investors in junior oil and gas companies: Expect extreme volatility, and don't expect oil prices above $70 per barrel anytime soon. He tells the The Energy Report that the winners in this sector will demonstrate maximal efficiency and minimal costs, and that even in this time of crisis there are bargains to be had.
The fact is that no matter if WTI or Brent goes up or down, what really matters is what we’re doing with it. At this point the United States is going to continue to produce oil at 9 million barrels per day.
Canada has been next in line to feel the loss of imports into the United States. They’ve managed to up their supply to the United States over 3 million barrels per day and now we’re just casting them aside as we concentrate on keeping our production strong.