What is the forecasted oil price?
Oil price from the executives of oil and gas companies
Oil price impacts all aspects of life, from your transportation every day, to the transportation of your food and products, to the price of almost every manufactured product including cosmetics!
Industries, governments, and energy models are in deep need of oil price information for many reasons. First, industries need it to calculate their costs. Air travel, for example, is the most sensitive to oil price as it hits their operating costs directly. Second, governments need it to balance their budjets. Oil exporters and oil importers need to know the expectations on oil price to balance their spending, case of oil exporters, or balance their budject allocation to oil imports. Third, energy modelers, the ones that try to model the energy balances on regional and global levels need oil price as input in their models to calculate the competition between fuels.
Another important use for the oil price is to value oil and gas assets. The expectations on oil price can decide whether an oil discovery will go into the exploration phase or not.
One way to get a feeling of how oil price is going to evolve in the short term is through Dallas Fed Energy Survey.
“The Dallas Fed conducts a quarterly survey of about 200 oil and gas firms located or headquartered in the Eleventh District — Texas, southern New Mexico and northern Louisiana — which operate regionally, nationally or internationally”
The Dallas Fed’s third-quarter Energy Survey shared the answers of executives of 159 oil and gas firms. The average is $85 per barrel.
