Right now the oil market is totally focused on finding a bottom for oil prices. However, according to OPEC's Secretary-General Abdulla al-Badri we've already hit bottom. Not only that, but he sees a real possibility that oil prices could explode higher to upwards of $200 per barrel in the future. He's far from the only one that sees a return of triple-digit oil prices.

Finding a bottom

According to the Secretary-General, speaking in London on Jan. 26, the oil market doesn't need to look for oil prices to bottom as the market has already bottomed. Instead, he offered quite bullish comments by saying, "Now the prices are around $45-$55, and I think maybe they [have] reached the bottom and we [will] see some rebound very soon." Now, normally that type of remark would be just another layer of noise, but this is coming from OPEC's Secretary-General so it comes with a lot of weight behind it.

That said, he's not saying that OPEC will come in and rescue the oil market by reversing its previous decision to hold steady on production. Instead, he sees the signs that the oil market is self-correcting as oil companies have made deep cuts to spending, which will eventually lead to lower production growth. Further, the rig count in the U.S. is plunging, which is usually a key to a bottom in oil prices. However, in the midst of cutting back as the industry works through the current oversupply the Secretary-General is now warning that the industry is putting future oil supplies at risk by under investing today.

Underinvestment leads to a shortage

The Secretary-General said that, "if you don't invest in oil and gas, you will see more than $200" when it comes to future oil prices. While he didn't give a timeframe, he did note the correlation between investment and future production. This is because oil production naturally declines and oil companies need to invest in new production to not only replace this decline in production from legacy oil fields but to add new production to meet growing demand. However, oil companies are reluctant to invest in new production as their cash flows decline.

Over time this could become a problem as oil fields around the world naturally decline by an average of about 5% per year. In order to overcome this decline oil companies need to develop about 200 billion barrels of oil supplies over the next decade and a half just to meet demand.

These supplies will require the industry to invest $7-$10 trillion. However, with the big capital budget reductions oil companies have announced this year it could make it harder for the industry to meet future supply needs. In fact, the industry might defer up to $150 billion oil projects this year due to the collapse in crude prices. Many of these investments, however, wouldn't have yielded actual production for a couple of years due to the long lead time of major projects.

As an example, Chevron delivered first oil on two of its Gulf of Mexico projects late last year after beginning construction on the fields in 2011. Meanwhile, another $6 billion project it just sanctioned at the end of last year won't produce any oil until 2018. It's these long lead time projects that are being delayed, which is setting the world up for higher oil prices in the future as an under investment today has the potential to lead to a constriction in future supplies.

Investor takeaway

OPEC's Secretary-General is calling the bottom in oil prices. While he's not the first to call a bottom, he does lead the organization that currently controls the oil market so his comments do have a lot of weight. Further, he's also suggesting that the cuts that oil companies are making could have a dramatic impact on future oil prices as the under investment has the potential to cause oil prices to rocket higher if demand grows faster than future supplies. That, however, would all be part of OPEC's plan as it purposely pushed for lower oil prices now so it could control market share once oil prices surged in the future. It's willing to endure short-term pain for the potential of a big long-term gain.
Source:http://www.usatoday.com/story/money/2015/02/03/opec-sees-oil-prices-exploding-to-200-a-barrel/22800331/

It's absolutely possible, but I pray it should be after may 29, when the thieves presently occupying Aso rock would have returned to their villages.

By the time it soars to $200 I want to hear the Yoruba jealous tout tell us in the Niger delta to drink our oil.

Trash, Is the name of OPEC sec gen General Buhari

monteriza:
It's absolutely possible, but I pray it should be after may 29, when the thieves presently occupying Aso rock would have returned to their villages.

Irrespective of the outcome of the elections, get your lazy greedy eyes off Niger delta oil.

Go and pacify your lunatic jihadis in the northeast so you can use the oil reserve there to fund your one love Ab0ki led Nigeria.

No more free Niger delta oil money!

Kapish!

monteriza:
It's absolutely possible, but I pray it should be after may 29, when the thieves presently occupying Aso rock would have returned to their villages.

Then again you will want a Buhari govt so he can end the 13% deravitave to oil producing states and share the bulk to your lazy region.

Go and start planting cocoa.

You will be weaned off free oil so use the time lag to prepeare. Knowing Ab0ki, when the Niger delta pulls out they will stop their lunatics in the northeast and start drilling the oil there. So nothing for you. That is what you get for being a traitor and lazy envious backstabber.

We have warned you already.

[size=28pt]#FarmCocoaNow![/size]

[img]http://rafrogblogus.files./2013/07/nigeria-cocoa-farmer-11.jpg[/img]

When oil price was sliding these are the type of comments we were seeing here.

oluspencer:
I laff in Egbira language cos I can't wait to inherit a shop filled with electronics in Alaba and bakery in north and moreover for those of u in oil rich creek of south south. 1 bomb don do una e go b like una dey smoke 4 refinary. Well thank God sey una no get farm land and if una get una don sell am hoe to buy gun. Well una go go soon chop bullet and drink oil.

Look at you. So its only northerners who want change. FYI, I'm from Niger Delta, Delta State to be precise.

BackDatAssUp:


Irrespective of the outcome of the elections, get your lazy greedy eyes off Niger delta oil.

Go and pacify your lunatic jihadis in the northeast so you can use the oil reserve there to fund your one love Ab0ki led Nigeria.

No more free Niger delta oil money!

Kapish!

monteriza:
It's absolutely possible, but I pray it should be after may 29, when the thieves presently occupying Aso rock would have returned to their villages.

You just captured my thoughts

monteriza:
Look at you. So its only northerners who want change. FYI, I'm from Niger Delta, Delta State to be precise.

Park well.

The movement as already started you can cross into Oduastan and enjoy your change there because no matter the outcome this useless arrangement ends come may 29.

The campaigning by the opposition has shown what they intend for the Niger delta. One kleptomaniac mad man in rivers does not make up a region.

Obiagelli:
You just captured my thoughts

See as you dey plan your life with another man's wealth. When we call you parasites like your slave masters this is what we meant.

Get ready for an end to free oil.

BackDatAssUp:


See as you dey plan your life with another man's wealth. When we call you parasites like your slave masters this is what we meant.

Get ready for an end to free oil.

Na you Sabi. If only the oil money dey touch your life, e for better

Come may 29 that your lunatic militia with no purpose other than to frustrate a Christian minority president from the Niger delta will be matched with all ferocity.

We will not kill but will hit you where it hurts most.

Hunger!

If you like get that bastard Obama to bomb us we will not relent.

This past 6 years has really show your true colors.

Obiagelli:

Na you Sabi. If only the oil money dey touch your life, e for better

So it is better if it was in ab0ki hands and that your leprous bastard tinubu's pocket Abi?


Just get ready to see an end to this useless arrangement.

You can farm your cocoa in exchange for oil to fuel your tokunbo car because we are not going to sell to you.

I will just love to see how you dunces will occupy obalende demanding Buhari should subsidize fuel that your Arewastan federation does not have.

Useless plebs.

Faibuhari:
Trash, Is the name of OPEC sec gen General Buhari

yea the only human on earth who can single handedly STABILIZE oil prize world wide

BackDatAssUp:


So it is better if it was in ab0ki hands and that your leprous bastard tinubu's pocket Abi?


Just get ready to see an end to this useless arrangement.

You can farm your cocoa in exchange for oil to fuel your tokunbo car because we are not going to sell to you.

I will just love to see how you dunces will occupy obalende demanding Buhari should subsidize fuel that your Arewastan federation does not have.

Useless plebs.

We have heard this story too often

BackDatAssUp:
When oil price was sliding these are the type of comments we were seeing here.

Actually, @Oluspencer was not far from the truth.

Obiagelli:

We have heard this story too often

Not only have you heard but have seen with your eyes. The Niger Delta militancy is the only group from the south to have gotten a settlement on their terms. We are no longer interested in your Nigeria. Go and enjoy your one nigeria without us and our oil. Nah by force.

If you like draft those lunatics in the northeast into your army and send them down to attack us and also get that Muslim bastard in the white house to support you with all the arms we will not be cowed by your threats of war. We will defend our integrity, our people and our wealth not with our blood but by the bloods of your theiving military.

Let me remind you this is not 1966. We have the arms on ground and in due time we will sack all prescience of your jihad army and police in our midst.


As I said earlier, start farming cocoa. I heard it takes at least two years to. Start fruiting.

E go be like dream for una eye.

Taju bastards.

Whether oil sells for $45 or $250 per barrel, Nigeria needs diversification, we need another source of revenue that can make us stand against all odds, I believe we can with our vast natural and human resources.

8 days

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Horlawoomey:
Whether oil sells for $45 or $250 per barrel, Nigeria needs diversification, we need another source of revenue that can make us stand against all odds, I believe we can with our vast natural and human resources.

8 days

Tell that to the Oduastanis of Arewastan.

See parasites


40% reduction in Osun’s federal allocation unjustifiable – Aregbesola

APRIL 18, 2014 BY ADE ADESOMOJU


Governor Rauf Aregbesola of Osun State has described as unjustifiable a 40 per cent reduction in the federal allocation being received by the state since July 2013.
Aregbesola spoke in Lagos on Thursday during the launching of a book, ‘Yoruba Elites and Ethnic Politics in Nigeria: Obafemi Awolowo and Corporate Agency.’ The book was written by an associate professor at the University of California-Davies, Wale Adebanwi.
The governor said the reduction had no basis as the nation’s oil revenue did not fall.
He said, “If there is anything my state does not have now, it’s money. We are managing with 40 per cent reduction in our allocation from the Federal Government. It is not as if I even enjoy saying I depend on the federal allocation, but the truth is that there is no magic that I would have made to suddenly taken our state out of  dependence on the federal allocation.
“It is important for us to know that there is no justification for that 40 per cent reduction in our allocation. The price of crude oil has remained almost the same at $108 per barrel, and the benchmark, according to them, is $75 per barrel.”
According to the governor, the state is now being forced to source for funds outside the federal allocation in order to meet its responsibilities of paying the entitlements of civil servants and retired workers.
He said, “So we are not close to the benchmark of $75 and yet since July of last year, there is a 40 per cent reduction in our allocation.  What that translates to I will tell you.
“It means I have to get N5.4bn to augment salaries and pension from July to December; N5.4bn extra, outside allocation, to ensure that since civil servants who are still active and those who have retired are paid their entitlements.
“What I receive from federation account is not sufficient to pay salaries.”
The governor, who represented a former governor of Lagos State and National Leader of the APC at the event, Bola Tinubu, who was the chief presenter of the book, bought copies of the new book at N5m on behalf of the Osun State.
He bought copies of the book  on behalf of himself with N500,000 and announced N2m for the launching of the book on behalf of Tinubu.

BackDatAssUp:


Tell that to the Oduastanis of Arewastan.

What is wrong with this one

Horlawoomey:


What is wrong with this one

No more oil.