Calgary, Alberta – AJM Petroleum Consultants of Calgary has released its first oil and gas price forecast for 2009, and is predicting that prices will rise as fossil fuels play a key role in helping the world climb out of recession.
“While we’ve seen a drop in demand for fossil fuels, Americans are being lured back to the roads with gallon sitting at US$1.70 or lower per gallon,” said Ralph Glass, vice-president of operations. “If President-elect Obama’s plan to put America back to work through infrastructure revitalization begins to materialize, fossil fuels will be the engine driving the Americans to prosperity. Factors like these suggest that crude oil is currently at its bottom average price, and a climb is soon to begin.”
Glass said that while be believes external forces will continue to cause near-near volatility and fluctuating prices, basic supply and demand, and the cost to bring on new product, will provide a truer picture of oil and natural gas pricing when forecasting. The consulting firm has forecast US$55 per barrel for 2009, rising to $75 in 2010, and then reaching $100 by 2013 and holding that level for the balance of the forecast.