SAN FRANCISCO, CA--(Marketwired - Feb 27, 2015) - The oil price collapse has left most of the industry reeling, but Mass Geremia remains unbowed. The president and CEO of Alberta oil and gas company Manitok Energy Inc. (TSX: MEI) used hedging to protect against the worst of the downturn. In this interview with The Energy Report, Geremia explains how his strategy of prudent and efficient "old school" expansion has Manitok on track to become an intermediate producer before the end of the decade.
The Energy Report: Oil has lost more than 40% of its value in the last four months. How low can oil go, and how long will its value remain depressed?
Mass Geremia: I've been through these cycles several times. This latest price decline is different than in 2008-2009. Back then, the world was going through an economic crisis. That is not the case today. I think we are witnessing a supply/demand shock based on both geopolitical motives and a modest increase in supply relative to total daily world oil demand. Oil will probably fall to about $40-50 per barrel ($40-50/bbl), but I don't think the price decline will last longer than another three to six months.
TER: You don't think the oil price has collapsed because the market is anticipating another economic collapse?
MG: If that were true, we'd see it in the stock and bond markets before we saw it in the oil market. Oil prices do not tend to predict economic events; they are lagging indicators. I think this event is driven by the Saudis, who have not...
Continue reading this interview with Mass Geremia: Three for Three and Going for Four: Manitok Energy's Mass Geremia
About Streetwise Reports - The Energy Report
Investors rely on The Energy Report to share investment ideas for the oil & gas, renewable and alternative energy industries. This valuable insight is integrated with in-depth company information, summaries from the latest research and news that will help you make smart investment decisions.
Manitok Energy Inc. paid The Energy Report to conduct, produce and distribute the interview. Mass Geremia had final approval of the content and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Mass Geremia and not of The Energy Report or its officers.
(February 27, 2015 - 9:15 AM EST)
News by QuoteMedia