QPN has a bit of an opportunity if it can get on with the drilling programme that it has tentativly outlined. By the time it has made a commercial discovery or two during 2010 above its present Bullseye production then it could reaop the benefit of a higher poo.
Fresh support in an article today for oil above US$100 by 2011.
"Oil above US$100 by 2011
Reuters | Tuesday, 11 Aug 2009
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Oil prices may rise above US$100 a barrel by early 2011, as global demand rises and producers fail to boost supply, Bernstein Research forecast.
Oil prices in the near-term should remain at or below $75 a barrel, moving higher in 2010 as global demand grows, and into triple-digits by late 2010 or early 2011, as demand outpaces supply, Bernstein analysts said.
"We believe that the stage is set for a sustained commodities bull run," Bernstein said in a note to clients.
"Demand will likely be better in late 2009/early 2010 than consensus estimates assume, and this combined with non-OPEC supply reductions should cause spare capacity to decline in 2010."
Bernstein's forecasts are driven by IMF estimates for 2.5 percent real global GDP growth next year. But Bernstein rejected forecasts from the U.S. Energy Information Administration, which call for non-OPEC countries to boost oil supplies this year and next.
Under-investment in oil fields means a slow recovery for non-OPEC oil output, since drillers need oil prices at or above $75 a barrel to push them to expand production capacity any quicker, Bernstein said.
"The (EIA) agency predicts positive non-OPEC supply growth in both 2009 and 2010. We find such bullishness on the supply side hard to fathom."
Oil futures surged to almost $150 a barrel last July, before plunging to nearly $30 in December as the recession deepened. U.S. oil futures edged above $71 a barrel on Monday"
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