Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Oil prices are under pressure in 2024 due to record oil production in the United States and sluggish demand in China, one of the world’s largest crude consumers, causing oil stocks lag behind the broader market for the second year in a row.
Among the industries tracked by the S&P Global index, oilfield services and oil and gas exploration are the two worst-performing sectors in 2024.
A year ago, three energy stocks were among the top 10 S&P 500 stocks most favored by Wall Street analysts: oilfield services providers SLB (SLB) and Halliburton (HAL), and oil and gas producer APA Corp. (APA). However, as of Tuesday’s close, these three energy stocks were all down more than 30% for the year.
Recent forecasts from the U.S. Energy Information Administration (EIA) suggest that crude oil prices will fall by about 6% on average next year as domestic oil companies ramp up production to a record 13.5 million barrels per day.
But despite this, Wall Street analysts have sharply raised their price targets for the three oil companies in their just-released forecasts. APA’s median 12-month price target is about 33 percent higher than its closing price as of Dec. 20, SLB shares are expected to rise 48 percent, and analysts expect Halliburton shares to rise 39 percent.
Analysts believe that Trump’s energy concept is more conservative, and after taking office he probably will speed up the granting of domestic oil and gas drilling permits, cancel the currently suspended LNG export project approval, while encouraging fossil energy production.
In addition, in order to ensure that American enterprises and residents can accept the use of affordable oil and gas resources, and in order to control the inflation level of the country, the Trump administration will strive to control the cost of oil to a relatively low level.
These actions by the Trump administration will help the U.S. economy recover and significantly boost energy demand, benefiting the oil and gas companies involved.
