CEO James Tisch discusses his oil and gas businesses within Loews' (L, Financial) portfolio and where he sees prices in the next few years.
He says, "In my mind, it is inevitable that prices will get to the $65 to $70 per barrel level in the next two years because otherwise the world as a whole will be just short oil. Demand is growing by 1 million barrels a day plus there's depletion that takes place. Just in order to stay even and accommodate that 1 million barrels of growth, the world has to find 6 million barrels a day of productive capacity. At $40 per barrel, that exploration and development work is just not taking place which will satiate demand two to three years from now."
