A Texas oil regulator expects oil to reverse its two-year slide and climb past $60 a barrel next year.
Ryan Sitton, one of three elected members of the Texas Railroad Commission, said: “Pretty much every single fundamental that we have points to those commodity prices going up, not down.
“I fully expect to see $60 a barrel oil, and then some, next year.”
The regulator plans to reveal new streamlined processes for the embattled sector next week.
Commissioner Christi Craddick labelled its strategy as “common sense practices”.
The proposal labelled the Texas Oilfield Relief Initiative is aimed at reducing paperwork and improving efficiencies.
The overhaul could include reducing gas well status filings, modifying gas well deliverability reporting, changing some pressure calculations, amending production definitions, prioritizing rig inspections in sensitive areas like cities or wetlands, creating area-wide surface casing requirements in counties with constant water depth, simplifying permit reissuance applications.
The Texas state regulator processed less than a third of oil and gas permits compared to two years ago.
Mr Sitton’s optimism mirrors Dallas Fed business economist Jesus Cañas’ outlook, who expects employment to grow in the second half of the year.