FWIW, Chris Martenson and Arthur Berman are predicting a *serious* shortage of crude in the next 5 years:
http://www.investorvillage.com/groups.a ... d=16142241
supply crunch coming
Re: supply crunch coming
The longer oil prices stay below "realistic" finding and development costs, the worse the supply crunch will be. This is an extremely capital intensive industry and we've not been investing the capital necessary to get the future supplies we are going to need.
Just look at the chart at https://www.iea.org/oilmarketreport/omrpublic/ and tell me how we are going to meet future demand if we stay on that path.
The EIA has confirm that from April, 2015 to April, 2016 U.S. crude oil production fell 765,000 barrels per day. Plus, they confirmed that from March to April of 2016 U.S. crude oil production fell 222,000 barrels per day. THE RATE OF DECLINE IS ACCELERATING.
Latin American production is also falling about 200,000 barrels per day month-after-month.
If oil goes to $100/bbl tomorrow, my SWAG is that it will take a year to stop the decline.
Just look at the chart at https://www.iea.org/oilmarketreport/omrpublic/ and tell me how we are going to meet future demand if we stay on that path.
The EIA has confirm that from April, 2015 to April, 2016 U.S. crude oil production fell 765,000 barrels per day. Plus, they confirmed that from March to April of 2016 U.S. crude oil production fell 222,000 barrels per day. THE RATE OF DECLINE IS ACCELERATING.
Latin American production is also falling about 200,000 barrels per day month-after-month.
If oil goes to $100/bbl tomorrow, my SWAG is that it will take a year to stop the decline.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group