Stock Guru LXES Profile
Because drilling in the oil sands of Canada is more expensive than traditional drilling, the price per barrel of oil is of fundamental importance to the businesses of the oil sands.
The International Energy Agency’s World Energy Outlook 2006 continues its confirmation that fossil fuels will dominate the energy market through 2030 as oil’s share slips to 33% from 35%.
IEA indicates that oil demand will grow by 1.3%/year during 2005-30–broadly in line with gross domestic product–averaging 1.7% in 2005-15 and 1.1% in 2015-30. It is predicted to reach 99 million b/d in 2015 and 116 million b/d in 2030, up from 84 million b/d in 2005.
Canadian oil sands are projected to triple to 3 million b/d by 2015 and reach 5 million b/d by 2030.
IEA Price Outlook
In its analysis of oil prices over the Outlook period, IEA has revised them upwards in the expectation that crude oil and refined-product market remains tight. Market fundamentals point to a modest easing of prices as new capacity comes on stream and demand growth slows. But prices could be driven up by new geopolitical tensions or a major supply disruption.
The Outlook assumes that the average IEA crude oil import price–$51 / bbl in 2005–will average slightly over $60/bbl through 2007, then decline to $47/bbl by 2012. It would rise slowly thereafter, reaching $50/bbl in 2020 and $55 in 2030. Assuming a 2.3%/ year inflation rate, the price in nominal terms would reach $97/bbl in 2030. Natural gas prices should follow this trend because of inter-fuel competition and the continuing use of oil-price indexation in long-term gas supply contracts.
Lexington Energy Services is in a position to grow with the worldwide demand.
Source: Lexington Energy Services Inc. , IEA and CAPP
CONTACT: Lexington Energy Services Inc., Mark Procknow, Investor Relations, Calgary, 1-877-279-4550
About Lexington Energy Services Inc.: Lexington Energy Services Inc. manufactures and leases innovatively designed oilfield service equipment. Through their wholly owned subsidiary, Lexcore Services Inc., we also provide a range of drilling services to meet the growing needs of the oil and gas industry, including Alberta’s oil sands.
Forward-Looking Statements: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Lexington’s filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
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