This Oil Tycoon Thinks the U.S. Government's Oil Predictions Are Overly Optimistic

Earlier this month, the U.S. Energy Information Administration (EIA), the U.S. government agency in charge of collecting, analyzing, and disseminating energy-related data, put out its latest short-term energy outlook (STEO). In that report, the EIA trimmed its 2017 oil price forecast and cut its expectations for oil production growth this year and next, seemingly throwing cold water on a near-term recovery in the oil market.

But one oil CEO, Harold Hamm of Continental Resources (NYSE: CLR), took it to task, saying he thought the report was so far off that it's distorting oil prices. He thinks the EIA isn't taking into account the discipline that shale drillers are showing these days, which should result in much less production growth over the next year than the EIA anticipates. That lower projected output, should, in theory, lead to higher oil prices and more profits flowing into Continental's coffers.

Image source: Getty Images.

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Source: Fool.com