U.S. Tight Oil Production forecast to peak in 2030
Posted: Fri Sep 13, 2019 8:34 am
https://oilprice.com/Energy/Energy-Gene ... n-Bpd.html
MY TAKE: There is plenty of oil to be recovered, but it won't happen at $55/bbl. Upstream companies are under pressure to "live within cash flow from operations". The active drilling rig count is too low today to increase U.S. oil production and upstream companies are not going to expand their drilling programs until they confidence in higher prices. Rystad is forecasting oil stays in the mid-$50s. There just isn't a lot of Tier Two leasehold that works at that price.
MY TAKE: There is plenty of oil to be recovered, but it won't happen at $55/bbl. Upstream companies are under pressure to "live within cash flow from operations". The active drilling rig count is too low today to increase U.S. oil production and upstream companies are not going to expand their drilling programs until they confidence in higher prices. Rystad is forecasting oil stays in the mid-$50s. There just isn't a lot of Tier Two leasehold that works at that price.