CEOs from energy companies gathered Monday in New York for the RBC Global Energy & Power Executive Conference. CNBC 's "Power Lunch" host, Brian Sullivan, sat down with some of the top executives to talk about the outlook for the oil and gas industries during the second half of the year.
Superior Energy Services
David Dunlap, CEO of Superior Energy, said on Monday that he does not see the market getting better over the next few quarters, but there could be some stability.
"I think we are beginning to get close to a bottom from a cost standpoint," he said. "The market is not going to get a lot better in the next few quarters, but we'll see some overall signs of stability in activity and that's going to drive some stability in the labor force as well."
Superior is one of the main labor providers in the country with more than 14,000 employees and more than $4 billion in revenue.
"Now if oil prices go back up to $95 per barrel we'll be scrambling for people," he said. "But absent that, I think that from a labor standpoint, we're going to have over the next few quarters the labor that we need to satisfy market demand."
Dunlap predicts that WTI will be higher by the end of the year, around the $65 to $70 range.
Southwestern Energy's CEO, Steven Mueller, said he is optimistic about natural gas prices.
"There is a lot of hope for gas prices," he said. "The demand is increasing, unlike oil."
Mueller said that $4 gas is historically cheap but "we make a lot money at $4." By the end of the year he anticipates WTI in the mid-$60s and natural gas at $4 if it is a cold winter.
Gary Heminger is the CEO of Marathon Energy, one of the biggest gas station owners in the country. He is optimistic about consumer demand over the next couple of months.
"We've seen a very volatile market over the last six weeks," he said. "It looks like we are on the cusp of some very good demand numbers coming into the summer."
Heminger said that consumer savings from cheaper gas are still "sitting by the sidelines, waiting to be invested."
He sees WTI around $70 by the end of the year but there could be a dip to below $50 before then.
Core Laboratories N.V.
David Demshur, Core Labs CEO, said that the U.S. is probably peaking now in terms of oil production.
"Right now the U.S. is producing about 9.5 million barrels a day, but we're probably peaking right now," he said. "We expect that will fall below 9 million barrels a day, probably to 8.9 million barrels a day."
He said he expects to see a decline in the amount of oil that is being produced, starting from next month.