Although 2008 ended with very low commodity prices for oil and natural gas, experts believe this is a temporary situation, according to a report by Integrity Natural Resources. LP. The Ohio and Texas managing nonoperating company invests in wells to acquire working interest. "Rigzone and many petroleum economists are predicting oil to be in the $80 to $90 range by the end of 2009," says a company spokesperson. "Integrity is using this temporary lull to utilize drilling and ancillary completion services that had been bid up to unreasonable cost levels or often unobtainable, during the recent price driven drilling frenzy." The company's strategy is to use "this now favorable drilling environment to drill wells that can last well over twenty years. It would make no sense to slow down drilling for a short term drop in prices." Once the current recession abates, prices will immediately go up, it reports. "The supply and demand imbalance that existed during recent healthier economic times, causes oil to go to $150 per barrel, has not been resolved. Profligate government spending will most likely create increased inflationary pressure that will also drive up commodity prices. "As to this current administration's stance on oil and gas exploration, further constricting supply, and you have the perfect storm for massive oil and gas price increases. With the well documented problems on Wall Street and the flight of capital out of these markets, Integrity Natural Resources LP has experienced unprecedented demand for its drilling projects...The best drilling projects will continue to be rewarded, regardless of fluctuations in market prices."
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