This Is No 1986: Andy Hall Sees Oil Rally Boosting Shale
Eesti Energia is one of the world's largest oil shale to energy companies with an annual production of around 1.3 million barrels of shale oil. The facility is in Narva, Estonia, on Nov. 19. 2014.
Photographer: Peter Kollanyi/BloombergThe oil industry’s billions in spending cuts are paving the way for a price rebound that will make the best shale producers attractive investments, commodity hedge fund manager Andrew J. Hall told investors.
The current rout is distinguished from the crash in 1986 -- which left crude trading below $25 a barrel for four years -- because OPEC countries today have almost no spare capacity. This time, shale oil will soon be needed to make up for production declines all over the world, pushing U.S. prices to as high as $65 a barrel, the head of Astenbeck Capital Management wrote in a Feb. 2 letter obtained by Bloomberg News.