product that is "less open to manipu-
lation geopolitically" than crude from
foreign sources. Levine added, "I believe
we will not see crude oil over one hun-
dred dollars a barrel for some time."
Taking note of Levine's comments,
Eric DeGesero, executive vice presi-
dent of the New Jersey Fuel Merchants
Association, which organizes the Expo,
s a i d i n a n i n t e r v i e w w i t h F u e l O i l
News following the show that when
crude "went all the way down to forty
dollars… we were still increasing our
production during the first quarter"
of this year. Oil prices started moving
up again in February, DeGesero noted,
"and there certainly have been losses in
jobs in domestic production of crude,
however we're still producing a lot of
crude oil."
DeGesero added, "The dynamics of
crude production have changed. New
wells can be turned off and turned on a
lot faster than used to be possible. That
is a long-term game-changer to our ben-
efit."
Tubman also addressed the compe-
tition between fuel oil and natural gas.
"The other good news is that all of the
market forces that were discussed last
year and were expected to drive natural
gas prices up over time are still valid," he
said. "Those drivers are still in place and
we can still expect those factors to cause
natural gas prices to rise in the medium
term. It won't happen overnight but it
won't take forever either."
DeGesero said, "There's been a dis-
location relative to world energy prices
and domestic natural gas prices." A
"revolution in natural gas production
has now found its way into the domes-
tic production of crude oil," DeGesero
said in the interview after the show,
"and while there will be little blips
here and there I think the long-term
trajectory is a downward pressure on
prices." DeGesero added that "exporta-
tion of natural gas is going to harmonize
domestic natural gas prices with world
prices going forward."
www.fueloilnews.com | FUEL OIL NEWS | JULY 2015 29
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