Our Blog
Shale Revolution Quelled?
A recent article in “World Oil” references the U. S. Energy Information Administration (EIA) prediction that tight oil production will decline by 57,000 barrels of oil per day (bopd) in May. With prices at a 6 year low, and the oil rig count cut in half, both Deutsch Bank AG and Goldman Sachs see at… Read More
Domestic Production Probably Peaking Now
A recent article in “Rigzone” cites a report by the U. S. Energy Information Administration (EIA) which predicts that domestic oil production will peak in April at 9.37 million barrels per day (MMbopd), plateau in May, and drop in June. The report predicts production continuing to drop to 9.04 MMbopd in September, and not getting… Read More
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
