MIDLAND, Texas (Big 2/ FOX24) – As an unpredictable 2020 comes to a close, the energy industry has it’s eyes set on a new year. One that many are optimistic about.
“I am optimistic. I think anyone that gets their living in the oil business has to be an optimist.” Mickey Cargile, of Cargile Investment Management says.
After seeing a swing of more than $100 in 2020, Cargile says he expects prices for WTI crude to regulate, saying that after a bust like the industry had, the recovery is slow.
“As it gradually grows, that’s good for the economy. It’s much better than the boom economy we had before,” says Cargile.
This optimism comes on the heels of an OPEC Plus agreement. Oil companies in Russia and Saudi Arabia will delay their production increases until March. Something Cargile says, will help everyone in the industry.
A contributing factor to his optimism is the increased presence of large oil companies in the Permian Basin. Companies like ConocoPhillips have poured millions of dollars into the basin since the pandemic began by buying smaller companies.
“It’s been surprising to me in this bust, that the majors are actually coming into the area and making additional investment. I think it’s showing that the major oil companies see the value in the Permian, and this has become the center of our oil economy.”
Cargile also said that 2021 brings another player to the oil industry, the Biden administration. He says implementation of the policies laid out in Biden’s campaign would be difficult, and that if he was successful, it would only drive the price of oil higher.
As a slow and gradual oil recovery happens across the world, Cargile says that there’s no better place to be than the Permian Basin. “The core economy in our area is very strong, and much stronger than it was 10, 20 or 30 years ago. So I look for that to continue and for this to continue to be a blessed place to live.”