where is oil going Core Labs CEO Demshur on

where is oil going


Core Labs CEO Demshur on Cramer (Paraphrased)
The CEO says he has great concern over where oil prices are going to be in the next three years.
They see 100 dollar plus crude oil again. Demand is over 1 and 1/2 % growth in demand for oil
in the last 3 years when in the past it has only run about 1%. There has been a big uptick in
in demand. He talked about the sharp declines in Mexico, West Africa Angola and Nigeria
and of course Venezuela.

International field development recovery has not occured. Decline curves around the world
are increasing. He is talking about peak oil around the world. Where is supply going to come
from the next 2 to 3 years. He sees higher oil prices for sure in the next three years.

He thinks in the next several years we will see reinvestment in deep water offshore
Guyana is one example. He thinks Onshore in the Permian Basin we will see a lot more enhanced oil
recovery methods. The Permian Basin has had over a million wells have been drilled in the
last 50 years. Now they are finding more oil from unconventional shale reservoirs. Shale
fields produces 9% of its oil naturally. We have enhanced oil recovery techniques that
can increase the recovery to 15%.

When core lab listed 20 years ago they had 86 million shares they now have 44 million meaning over the
years they have bought back half their shares. Paid dividends all those years as well.

Wilk