By Jeff McMahon

Oil prices may rise or fall in the short-term, but they will return to a range of $55 to $65 in the long term because that’s the price of oil from fracking shale wells, the Goldman Sachs head of research said in Chicago Wednesday.

Oil prices today were about $52 for West Texas intermediate and $54 for Brent crude, and Goldman Sach’s “boring” forecast is that they will remain at $55 to $57 respectively, said Jeffrey R. Currie, the global head of commodities research for Goldman Sachs.

“The key point is not that there’s a consensus developing around the price, there’s a consensus developing around the technology, the dominant technology,” Currie said in a seminar at the University of Chicago’s Saieh Hall for Economics. The dominant technology is the combination of horizontal drilling and hydraulic fracturing that have revolutionized oil and gas production in the United States…

Continue reading at Forbes…

Read More

Areas of Focus: Energy Markets
Definition
Energy Markets
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.
Fossil Fuels
Definition
Fossil Fuels
Under current policies, fossil fuels will play an important role in the energy system for the foreseeable future. EPIC research is exploring the costs and benefits of these fuels as...
Climate Change
Definition
Climate Change
Climate change is an urgent global challenge. EPIC research is helping to assess its impacts, quantify its costs, and identify an efficient set of policies to reduce emissions and adapt...
Climate Economics
Definition
Climate Economics
Climate change will affect every sector of the economy, both locally and globally. EPIC research is quantifying these effects to help guide policymakers, businesses, and individuals working to mitigate and...
Fossil Fuels
Definition
Fossil Fuels
Under current policies, fossil fuels will play an important role in the energy system for the foreseeable future. EPIC research is exploring the costs and benefits of these fuels as...