You should all read this: https://www.zerohedge.com/news/2018-03- ... -dominance
The EIA and IEA do not have a very good track record for the long-term predictions about supply & demand. For many months, EIA has been predicting a massive increase in U.S. natural gas supply, but it just is not showing up in the "real data". Now they say it is coming on-line this summer. Maybe it is, but maybe not.
Fake News
Re: Fake News
As I have said in several of my weekly podcasts, EIA and IEA predictions that the U.S. shale plays can meet all future oil demand grow at probably wrong.
The Wall Street Journal: The Market's expectations on US oil production are mistaken
In an interview, Centennial Resource Development chairman/CEO Mark Papa tells the WSJ that the idea that shale-oil producers can increase production quickly and maintain the higher production is fallacious, and he's going to deliver the message to the CERAWeek energy conference in Houston March 6th.
The article notes that Papa told people in January that most of the best drilling locations in North Dakota (Bakken) and south Texas (Eagle Ford) have already been tapped, and issues like the shortage of sand for fracking indicate there's more trouble to come, meaning that US production isn't going to go up as fast as most people think it will.
Some executives tell the WSJ that Papa's assessment may be designed to raise oil prices to the benefit of him and his company; Papa denies he has a personal interest in saying what he's saying.
The article notes that Continental resources CEO Harold Hamm has also suggested that forecasts for US production are overly optimistic.
The Wall Street Journal: The Market's expectations on US oil production are mistaken
In an interview, Centennial Resource Development chairman/CEO Mark Papa tells the WSJ that the idea that shale-oil producers can increase production quickly and maintain the higher production is fallacious, and he's going to deliver the message to the CERAWeek energy conference in Houston March 6th.
The article notes that Papa told people in January that most of the best drilling locations in North Dakota (Bakken) and south Texas (Eagle Ford) have already been tapped, and issues like the shortage of sand for fracking indicate there's more trouble to come, meaning that US production isn't going to go up as fast as most people think it will.
Some executives tell the WSJ that Papa's assessment may be designed to raise oil prices to the benefit of him and his company; Papa denies he has a personal interest in saying what he's saying.
The article notes that Continental resources CEO Harold Hamm has also suggested that forecasts for US production are overly optimistic.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group