Even the most sophisticated organizations can’t predict oil and gas prices

When it comes to who has the crystal ball for predicting the future of oil and gas, our staff would agree that our combined 70 plus years of oil and gas industry experience has taught us that even the largest, most equipped and experienced organizations in the world can’t accurately predict where oil production and prices are heading over the next few years, much less the next fifty years. They can’t even agree on how to account for oil inventories, nor how to interpret the data.

While all of us tend to read articles that support our opinions about the future of our mineral and royalty values, it is not likely that our opinions on the subject are going to be very accurate if the three largest oil forecasters can’t agree on the future of oil prices over the next couple of years, much less predict longer term. And the variables that impact oil and gas values have never been so complex as they are today. It’s important to remember, oil and gas are commodities, and commodities are always risky. The beginning of wisely managing your finances, and your mineral and royalty interests in particular, starts with accepting the high risk nature of what is possibly one of your largest assets.

Resources: https://www.bloomberg.com/professional/blog/somebody-big-has-called-this-years-oil-market-completely-wrong/

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