Allied Energy Corp. (OTCMKTS: AGYP) stock is well positioned as analyst Jeffries predicts $150 per barrel oil when and if the world fully reopens.
Chris Wood, global head of equity strategy at Jeffries, says, “In a really fully reopened world, the oil price could go up to $150 because the supply constraints are dramatic.”
He told CNBC that the ‘political attacks’ on fossil fuels have reduced investment in fossil fuels. As a result, Wood envisions a more pronounced shortage of energy if and when full demand returns.
“The issue for me is not the oil price, the issue is the pandemic,” Wood says. “The oil price is gonna go higher in a fully reopened world because nobody’s investing in oil but the world still consumes fossil fuels.”
Independent driller Allied Energy Corp. (OTCMKTS: AGYP) is in an enviable position if Wood is right. AGYP is pumping from five wells on the Green Lease and Annie Gilmer leased sites in Texas.
Now AGYP is getting close to pumping oil again from a sixth well 1-H on its Prometheus leased site in Texas. AGYP Tweeted it is getting ready for operations at this Well.
Up until 2000, fossil fuels fulfilled 84% of the world’s energy needs.
Oil analysts at JP Morgan also anticipate higher oil. They see triple digit oil reaching $125 per barrel by 2022 and $150 pricing by 2023.
After a dip in recent weeks, oil began climbing last week. Long term, Jeffries and JP Morgan see producers like OPEC+ struggling to meet world oil demand in future years. As demand peaks again, producers will be energy short, their analysts finds.
This all bodes well for AGYP. As an independent driller on America soil, AGYP’s catalyst and value are its assets under management (AUM). As oil grows more costly, AGYPs valuation rises.
AGYP proves it can rework older or abandoned wells with new technologies to make them commercial again. Well 1-H at Prometheus once pumped 335 barrels a day plus 298,000 cubic feet of natural gas.
The omicron variant has proved to be a false alarm. It causes illness but rarely anything more.
Scott Sheffield, CEO of Natural Gas Resources, says that U.S. oil drillers may need a half-decade to resume pre-pandemic production levels. U.S. crude inventories fell by 3.1 million barrels last week, according to the American Petroleum Institute (API). Some oil traders still believe that the Biden Administration could tap Strategic Petroleum Reserves (SPR) again.
Allied Energy Corp. (OTCMKTS: AGYP) is exploring for oil and gas at three locations in Texas. They are the Green Lease, Annie Gilmer and Prometheus sites. AGYP has already hit oil at five wells at the first two locations. And now it is exploring for more oil and gas at Prometheus.
Keep AGYP stock on your Watch List as oil and gas energy stocks are rising in value and global oil long term is seen spiking.
Link to more news are at https://alliedengycorp.com/ and https://twitter.com/AlliedEnergyCo1
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