Josef Schachter – Oil and Natural Gas Forecast; Geopolitical Factors, OPEC vs US Production, Stock Valuations

December 21, 2023

Josef Sachachter, Editor of the Schachter Energy Report joins us to share his outlook for oil and natural gas prices and assess the overall valuations of oil stocks.


When it comes to price forecasts we ask about the impact of geopolitics especially in the Red Sea. We then discuss the supply side of the market balancing OPEC announced production cuts to the actual cuts seen and US production back at all time highs. On the US production front we ask about the falling rig counts vs the higher production levels.


When looking at the oil stocks we ask Josef if he sees companies turning more to growth next year rather than continuing to focus on return money to shareholders. We also ask about M&A in the sector and if large deals will continue in 2024.



Click here to visit the Schachter Energy Report website.

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    OPEC’s 2024 Crude Oil Production Cuts, Explained

    By Robert Rapier – Dec 20, 2023

    “OPEC (Organization of the Petroleum Exporting Countries) and its allies, collectively known as OPEC+, agreed to cut oil production by 1 million barrels per day (bpd) starting in January 2024. This decision was driven by several factors, but it might be helpful to consider OPEC’s motivations.”

    “In much of the world – particularly countries that are net crude oil importers – OPEC’s motivations are frequently at odds with the economic desires of those countries. OPEC seeks to maximize the value of the crude oil reserves of member countries. This is generally official government policy.
    Contrast that to the government policies of the U.S., which generally revolve around a desire for stable, but low prices for energy. That isn’t necessarily what U.S. oil companies seek, so that often pits the objectives of the U.S. government against those of the U.S. oil industry.”

    “In OPEC countries, the goals are aligned. In many cases, the governments of these countries generate most of their revenues from the sale of crude oil into the export market. So, OPEC seeks the highest possible oil price they can get, without putting the world into recession, or creating incentives for rival production and conservation efforts.”