United States oil producers are behind oil's current lower prices, which are here to stay for the foreseeable future, oil guru Rusty Braziel told "Mad Money" host Jim Cramer on Friday.
"If we look forward for the next five years, the forward curve of crude oil in the United States is at $50 flat," the president and CEO of RBN told Cramer. "It's the ingenuity of U.S.-producing companies. We've learned how to produce and make money at 50 bucks."
According to Braziel, U.S. companies have introduced new ways of fracking and drilling that allow them to extract more hydrocarbons, the main ingredients of petroleum and natural gas.
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"It's the technology that makes it work," Braziel said. "You get a lot more hydrocarbon out of each well, [and] we're getting it cheaper per unit because the well costs haven't gone up much at all."
And, with President Donald Trump pushing for deregulation in the fossil fuel industry, energy companies are "feeling great" despite the drop in prices, said Braziel, who advises a number of big-name energy players.
If those companies see some federal regulations lifted, that could lead to a chain reaction that keeps oil prices at bay for good, Braziel argued.
"Now they're looking at a situation where regulations are at least expected to be dialed back, which is a great thing, which means that they'll be able to produce for less money, which means they'll be able to have lower break-even prices, which means they'll be able to make more money, which means they'll be able to produce more hydrocarbons, which means ... perhaps we could make so many hydrocarbons that the price stays low no matter what," the CEO said.
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