Raymond James: Despite energy transition push, oil and gas expected to remain key part of energy mix

Both the crude oil and natural gas markets are not expected to see significant movement next year, but the medium- and long-term outlook for both markets looks positive, said Jim Rollyson, Oilfield Service Analyst at Raymond James Financial. Speaking at the 2023 IADC Annual General Meeting on 10 September, Mr Rollyson said that, even with renewables taking up a larger share of the energy mix moving forward, demand for oil and gas should still remain high in the coming years. With OPEC+ still maintaining production cuts, and Russia unlikely to see a significant growth in production following sanctions from Western countries in the wake of the Ukraine war, supply growth will have to come from somewhere, he said. In this interview with DC from the conference, Mr Rollyson explained where this supply growth will come from, along with his overall bullish view on oil and gas in the mid- and long-term future. He discusses where Raymond James sees oil prices and natural gas prices falling within the next year, as well as whether we’ll see significant movement in the US total rig count in that same timeframe.