Ex-US Official Predicts 'Slow and Steady' Rise in Oil Prices Over Next 2-3 Years

WASHINGTON (Sputnik) — McConnel stated that the oil market is set to get to the point where prices will rise and then that "will likely spur investments."

“Directionally, on average, what I think we’ll see a slow and steady rise in pricing over the next two to three years. I think that will happen,” McConnel said. “Over the next five years I think we are generally going to be trending up, and then we’ll come down again.”

McConnell believes that the future for the shale under the administration of Donald Trump is “better” than it was under the last administration.

“The attitude, the desire in this administration is for us to use energy as a strong point in our society, in our economic positioning, in our ability to provide energy security, not just for our country but for the world,” he explained. “I believe the focus will be developing our resources more completely, more robustly and at the same time continuing to strive for environmental responsibility. It’s not either or, it’s both.”

OPEC sealed a deal on November 30, 2016, agreeing to cut its oil output by 1.2 million barrels per day for the first six months of 2017 in an effort to stabilize the oil market and bring oil prices to the healthy range of $50-60 per barrel. The deal went into effect in January. Eleven non-OPEC countries, including Russia, Mexico and Kazakhstan, later joined the deal, pledging to reduce production by 558,000 barrels per day on a voluntary basis.