Our Blog
New Swing Producer?
Since the inception of OPEC, Saudi Arabia has acted as the “swing producer” of crude oil in the global market. With enormous oil and financial reserves, and operational flexibility, the kingdom has been able to move prices and manipulate market share. However, a recent article in “Rigzone” cites a report by UK based consulting group,… Read More
Tight Squeeze for Tight Oil Producers
“World Oil” reports that banks typically reset loans to oil operators in April and October based on the average price of oil over the preceding 12 months. When oil was over $100 per barrel and interest rates were exceptionally low, many shale producers loaded up on cheap debt. However, with the implosion of crude prices,… Read More
Crude Stocks to Decline?
Stagnant demand, low prices and increasing domestic oil production have all led to record high crude stocks. According to a recent article in “World Oil”, inventories reached 471 million barrels (MMbbl) at the end of March. This led some industry observers to fear that the U. S. might be running out of crude oil storage… Read More
Record U. S. Oil Production in 2015?
“World Oil” reports that U. S. oil production might peak at 9.7 million barrels per day (MMbpd) by September of 2015, according to Rystad Energy. “Oil” in this case is defined as crude oil and lease condensate. Rystad’s analysis assumed an average West Texas Intermediate oil price of $55 for the year, and 400 horizontal… Read More
Rig Decline Continues
As Yogi Berra said, “This is like déjà vu all over again.” The U. S. oil rig count dropped for the 16’th straight week, but production and inventory levels continued to climb, according to a recent article in “World Oil”. The Baker Hughes oil rig count dropped by another 12 last week to 813, the… Read More
