Consultant says Era of Cheap Oil is Over

BY PHYLLIS JACOBS GRIEKSPOOR

The Wichita Eagle

The world is officially out of $30 a barrel oil, analyst Henry Groppe told more than 600 participants and their guests at the opening breakfast of the Kansas Independent Oil and Gas Association’s (KIOGA) annual convention in Wichita Monday.

That means, he said, prices generally will be in the range of $35 to $55 a barrel for at least the next six years but with continued volatility in the market that could see prices swing from the low 30s to the high 60s.

Groppe and his Houston-based consulting firm Groppe, Long & Littell provide long-term forecasting, planning and development for the energy industry. He has more than 55 years of experience in the oil and gas industry and a track record of consistent accuracy in trend forecasting.

“We are not out of oil,” Groppe said. “We are just out of cheap, easy-to-find oil. We have spent millions of dollars and many years of exploration since the 1970s and we have not found any major new supplies of oil.”

Groppe predicted a similar trend for natural gas prices over the next six years. His prediction is based on historic supply and demand trends of the last 40 years.

KIOGA began its annual meeting in Wichita Sunday night with a reception. Business seminars, a trade show and speakers continued Monday. The group’s annual golf tournament is scheduled at the Rolling Hills and Terradyne courses on Tuesday.

For more on KIOGA and the annual convention, see Tuesday’s Wichita Eagle.

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