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…

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Areas of Focus: Energy Markets
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Energy Markets
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Fossil Fuels
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Climate Change
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Climate Change
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Climate Economics
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Climate Economics
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