As I pointed out in my podcast, US crude oil production is "seasonal"; peaking in November each year and then declining during the winter months. D&C activity in the Bakken, Rocky Mountains, Oklahoma and some areas of Texas is more difficult and more expensive in sub-freezing conditions.
Read: https://www.reuters.com/business/energy ... 022-12-02/
Getting back to the pre-pandemic peak of 12,860,000 bpd is not expected to happen in 2023.
U.S. oil production likely to decline after November
U.S. oil production likely to decline after November
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: U.S. oil production likely to decline after November
Dan:
your opinion is requested, I think you have touched on this in your other posts,
how long will Team Biden we able to continue draining the SPR to pad these weekly EIA petroleum status reports?
we all realize this has been done to pressure domestic gasoline prices to help Democrats buy the midterm elections...
did the Energy Dept recently announce refilling the SPR would start soon?
that 'price cap' of $60 on Russian oil seems more like a PR move by the EU, not really very effective long term,
Putin knows how to bypass this with China & India and rogue tankers carrying Russian oil,
and Hungary just announced they would pay market price to purchase Russian oil
many don't recall that Orban flew to Moscow and had a nice chat with Putin a year ago just prior to Russia's invasion of Ukraine
they've been on the same page for years
your opinion is requested, I think you have touched on this in your other posts,
how long will Team Biden we able to continue draining the SPR to pad these weekly EIA petroleum status reports?
we all realize this has been done to pressure domestic gasoline prices to help Democrats buy the midterm elections...
did the Energy Dept recently announce refilling the SPR would start soon?
that 'price cap' of $60 on Russian oil seems more like a PR move by the EU, not really very effective long term,
Putin knows how to bypass this with China & India and rogue tankers carrying Russian oil,
and Hungary just announced they would pay market price to purchase Russian oil
many don't recall that Orban flew to Moscow and had a nice chat with Putin a year ago just prior to Russia's invasion of Ukraine
they've been on the same page for years
Re: U.S. oil production likely to decline after November
Biden said he would buy oil at 70 for the SPR but he is still dumping at 75
How do you know when a politician is lying? Their lips move.
The market says we are in a glut scenario. Sell all your energy stocks now!
How do you know when a politician is lying? Their lips move.
The market says we are in a glut scenario. Sell all your energy stocks now!
Re: U.S. oil production likely to decline after November
IMO:
> FEAR of recession is the #1 thing pressuring oil.
> G7 price cap is a political stunt that won't take much oil off the market, if it does it will be months away went the tankers can't get insurance or if G7 is successful in putting sanctions on some country that buys Russian oil at more than $60.
> OPEC+ is in control and they will push the oil price up to what they believe is a fair price. My guess is north of $80/bbl.
> Biden Administration is clueless and powerless. The GOP controlled House should be able to stop the SPR draws.
> Biden's deal with Chevron/Venezuela might add ~50,000 bpd of heavy oil, which we do need, but it should not have much impact on WTI price.
> China backing off their Covid Zero policy should increase demand and the price.
> FEAR of recession is the #1 thing pressuring oil.
> G7 price cap is a political stunt that won't take much oil off the market, if it does it will be months away went the tankers can't get insurance or if G7 is successful in putting sanctions on some country that buys Russian oil at more than $60.
> OPEC+ is in control and they will push the oil price up to what they believe is a fair price. My guess is north of $80/bbl.
> Biden Administration is clueless and powerless. The GOP controlled House should be able to stop the SPR draws.
> Biden's deal with Chevron/Venezuela might add ~50,000 bpd of heavy oil, which we do need, but it should not have much impact on WTI price.
> China backing off their Covid Zero policy should increase demand and the price.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: U.S. oil production likely to decline after November
Dan,
thanks for your feedback
we paid avg of $3.49/gal in south Florida for unleaded gasoline just 3 weeks ago
today prices are just below $3.00/gal in NW Florida
don't see these low prices lasting long
thanks for your feedback
we paid avg of $3.49/gal in south Florida for unleaded gasoline just 3 weeks ago
today prices are just below $3.00/gal in NW Florida
don't see these low prices lasting long