lower 48 production
lower 48 production
was down 208k bpd--- big number!
Re: lower 48 production
As I have posted here MANY TIMES, EIA and IEA production forecast models are flawed. They are now forced to admit their error. We will see U.S. crude oil production drop by more than 500,000 bbls per day in the 4th quarter, and that number is probably too conservative.
U.S. operators are not going to complete enough wells in the 4th quarter to offset the rapid decline of just the wells completed in 2014. Add in the decline of all the well's completed prior to 2014 and you can start to understand what is about to happen.
The United States will soon be importing more oil than it produces.
U.S. operators are not going to complete enough wells in the 4th quarter to offset the rapid decline of just the wells completed in 2014. Add in the decline of all the well's completed prior to 2014 and you can start to understand what is about to happen.
The United States will soon be importing more oil than it produces.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: lower 48 production
The global oil market is doing much better than you would think.
Morgan Stanley is saying that the physical oil market is much better than the financial one. China has put a floor on the market as it continues to buy 500,000 barrels a day to fill its oil reserves. China is adding two new storage facilities that can hold a combined 50 million barrels of crude.
As reported by Bloomberg: “While oil fundamentals aren’t strong, physical markets do not corroborate the substantial weakness in flat price,” New York-based Morgan Stanley analyst Adam Longson said in a report Monday. The “latest oil pricing pressure appears more financial than physical.”
Morgan Stanley is saying that the physical oil market is much better than the financial one. China has put a floor on the market as it continues to buy 500,000 barrels a day to fill its oil reserves. China is adding two new storage facilities that can hold a combined 50 million barrels of crude.
As reported by Bloomberg: “While oil fundamentals aren’t strong, physical markets do not corroborate the substantial weakness in flat price,” New York-based Morgan Stanley analyst Adam Longson said in a report Monday. The “latest oil pricing pressure appears more financial than physical.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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bearcatbob
Re: lower 48 production
FWIW - commentary on CNBC is now talking about consumption growth and production decreases. H'mmm - where have we heard that concept?
Bob
Bob
Re: lower 48 production
People often ask me when I think oil prices will go back up. On response is "when the Wall Street gang thinks they made all the can on the downside."
"Speculators" dominate the trading of oil futures on NYMEX. Non-commercial trades outnumber commercial trades by 20 to 1. When the shorts lose confidence in the downside they can quickly change and push oil prices up.
Supply / Demand fundamentals are clearly getting much tighter.
"Speculators" dominate the trading of oil futures on NYMEX. Non-commercial trades outnumber commercial trades by 20 to 1. When the shorts lose confidence in the downside they can quickly change and push oil prices up.
Supply / Demand fundamentals are clearly getting much tighter.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group