Oil ∓ Gas Execs Say Price of Crude to Drop by Year's End

The survey was done by KPMG, a global network of professional firms providing audit, tax and advisory services. It polled over 370 financialexecutives from oil and gas companies. Bill Kimble, executive director of KPMG's Global Energy Institute, said 55-percent of respondents thought theprice of a barrel of crude will drop by the end of the year.

"This survey, what the executives said is that, by the close of the year, the majorityof them believe the price of crude will be just below a hundred dollars."

While 44% felt that prices would peak by the end of the year, 39% thoughtthey would not peak until after 2010. Kimble says the survey found theexpectation of increased investment by US energy companies due to concernsabout energy security:

"We also asked them, what do you think would be the best to enhance energy security?43 percent said we need to open ANWAR, which is the Arctic National Wildlife Reserveto drilling, and another 28-percent said we need to open up drilling in the Rocky Mountain region."

Kimble says the oil industry shouldn't get the blame for rising prices and that today's dynamics point to individuals and companies investing in commodities.

Pat Hernandez. KUHF- Houston Public Radio News.
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