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Offsetting Depletion
Almost half of Lower 48 crude produced last year came from wells drilled since the start of 2014, according to an article in “Oil Voice”. The good news is that as new horizontal drilling and completion techniques enabled the shale revolution, production from low permeability tight reservoirs increased dramatically. Tight reservoirs which include, but are… Read More
LNG Export Risks
“World Oil” reports that analysis by consulting group, Wood Mackenzie, indicates that U. S. LNG (liquefied natural gas) exports to Europe could be exposed to several risks over the next five years. Some of these are obvious and others less so. An obvious risk is that Russia, in an attempt to preserve gas market share… Read More
Crude Price Expectations
In a recent article in “Oil Voice”, market watcher, Chris Vermeulen offers his take on where oil prices are headed. With the current price flirting with $40 per barrel, the obvious question is whether we are headed for a major recovery, or back toward recent lows near $26. Vermeulen’s answer is based partly on technical… Read More
Shrinking Glut?
“Rigzone” cites a Bloomberg report that the global oil glut might be starting to shrink. A month ago, international traders and major oil companies were considering buying oil and storing it on tankers. This can be profitable when a contango, or the expectation of higher future prices, exists. However, the spread between current prices and… Read More
Condensate Con
A recent article in “Oil Voice” by Kurt Cobb, offers the possibility that the global oil glut is mostly attributable to condensate, rather than crude oil per se. Condensates are hydrocarbons that exist in the reservoir as a gas, but when they reach the lower temperatures and pressures at the surface, they condense into a… Read More
