U.S. oil companies didn’t merely survive OPEC’s attempt to drown them in low prices. The energy industry is emerging from this dark period of bankruptcies and job cuts much leaner and ready to thrive, even at prices that were once too low.
OPEC’s decision in November to abandon its strategy of flooding the world with excess supply allowed oil prices to stabilize above $50 a barrel. That bottom in prices has allowed the U.S. shale oil producers that have driven the boom in American oil production over the past decade to once again start pumping more oil.
That’s why the U.S. Energy Information Administration significantly upgraded its 2018 forecast for domestic oil output to 9.5 million barrels per day, compared with 8.9 million barrels as of last November.
JPMorgan is even more bullish on American oil, predicting the U.S. will pump 9.7 million barrels a day by the end of next year. So No is the time to Invest in Oil!