<p>Gas production should be good, and exploration for gas assuming the price holds. However, with Obama removing 2/3 of the leases available for drilling on federal land, it sends mixed signals. The good news is that some companies actually own the land they are drilling on because they bought out the rights a long time ago. Other companies aren’t as stable and have to meet lease deadlines. The good news is a lot of development is happening on private land anyway. It can be hard for companies to invest in projects or buy up rig contracts if the price is fluctuating because of demand in the domestic market or overseas. What is good about the US is that WTI crude has maintain a significantly cheaper level than Brent crude and should remain so over the future given the heavy investments in the Bakken, Bakerfields, Marcellus, Eagle Ford and Permian Basin. The only issue is the price. I am of the opinion that with all of these foreign countries becoming industrialized demand for oil and gas should remain steady and consistent. The price also needs to be high enough to justify deep water and unconventional investments. My family has been in the oil industry a long time and after consulting my father, uncles, and cousins I’ve come to the conclusion that the only thing that could seriously hurt the oil industry right now is government policy and another global economic crisis.</p>