GREAT AGAIN: US Oil Output to Exceed Saudi Arabia ‘At Their Peak’ in Six Months

America’s energy industry continued to expand under President Trump heading into the New Year, with new estimates showing US crude output is on track to exceed Saudi Arabia “at their peak.” “America’s journey to preeminence in the global oil trade is about to hit another milestone,” writes Bloomberg. “Propelled by the shale-oil boom, the U.S. […]

Art Berman: Exposing The False Promise Of Shale Oil

Art Berman, geological consultant with over 37 years experience in petroleum exploration and production, returns to the podcast this week to debunk much of the hopium currently surrounding America’s shale oil output. Because the US is pinning huge hopes on its shale oil “revolution”, so much depends on that story being right. Here’s the narrative […]

2019 US Oil Output to Average 12MM Barrels Per Day

U.S. crude oil production will average 12.1 million barrels per day (MMbpd) in 2019 and 12.9 MMbpd in 2020, with most of the growth coming from the Permian region of Texas and New Mexico. That’s according to the U.S. Energy Information Administration’s (EIA) latest short-term energy outlook, which estimates that U.S. crude oil production averaged […]

Fracked Shale Oil Wells Drying Up Faster than Predicted

In 2015, Pioneer Natural Resources filed a report with the federal Securities and Exchange Commission, in which the shale drilling and fracking company said that it was “drilling the most productive wells in the Eagle Ford Shale” in Texas. That made the company a major player in what local trade papers were calling “arguably the largest single economic […]

Fears Of US Shale Demise May Be Overblown

Recently, there has been some concern about the ability of U.S. shale, and in particular, the Permian Basin, to continue the meteoric increases in production that have characterized the past decade’s boom. Growth in U.S. shale production since 2010 has led to a scenario no one ever imagined even a few years ago. America is now […]

Saudi Arabia confident cuts by OPEC and allies will balance oil market

Saudi Arabia’s energy minister said on Wednesday he was confident that action to rein in output by OPEC and its allies would bring the oil market into balance, unless there was an unexpected development. Khalid al-Falih also said he would not rule out calling for further action by the Organization of the Petroleum Exporting Countries […]

What All That Oil Really Means for the Saudis

In case you didn’t know it, Saudi Arabia is sitting on top of a lot of oil. The first independent assessment of reserves in about 40 years has just proved it. The question is how the kingdom ensures that most of it won’t still be there when the world no longer wants or needs it. Producers in the […]

A billion barrels: BP expands Gulf work

BP has approved a $1.3 billion expansion at one of its oil projects in the Gulf of Mexico and discovered an additional 1.4 billion barrels at two of them. “BP’s Gulf of Mexico business is key to our strategy of growing production of advantaged high-margin oil. We are building on our world-class position, upgrading the […]

“Energy Dominance,” what does it mean? Decoding a Fashionable Slogan

“Now, I know for a fact that American energy dominance is within our grasp as a nation.” Ryan Zinke, U.S. Secretary of the Interior (source) “All Warfare is Based on Deception” Sun Tzu, “The Art of War” Over nearly a half-century, since the time of Richard Nixon, American presidents have proclaimed the need for “energy […]

Saudis Slash Oil Output. Get Ready for Trump Tweets

The list of things that President Donald Trump criticizes in his tweets varies from one day to the next. He may soon have to direct his ire to oil prices and the actions of his ally, Saudi Arabia, once again. The desert kingdom is already making good on its promise to slash supply, and the […]

The World’s Most Productive Oil Field

Many people will tell you that the production rate of Saudi Arabia’s Ghawar oil field, which has yielded 5 million barrels of petroleum per day for decades, will never be surpassed. In fact, no other oil field has ever come close to topping the production rate of Ghawar, and up until recently I would have […]

Oil And Gas See Regulatory Windfall Under Trump

Trump’s border wall is at a standstill, his infrastructure plan never got off the ground, and many other policy initiatives are in disarray. But one area where the Trump administration has been ruthlessly effective has been in promoting the interests of the energy industry. His federal agencies have succeeded in gutting a long list of […]

OPEC oil output falls most in two years as Saudi Arabia makes cuts

Before its agreement to cut oil supplies even started, OPEC’s production plunged by the most in almost two years last month. In a sign of the urgency felt by the cartel amid tumbling crude prices, leading member Saudi Arabia throttled back production, according to a Bloomberg survey of officials, analysts and ship-tracking data. The group’s […]

Will Exxon Greenlight This Huge LNG Project?

Exxon has secured long-term purchasing commitments for liquefied natural gas from its Rovuma project in Mozambique, moving closer to a final investment decision on a facility that will add as much as 15.2 million tons of LNG to global capacity. In a statement, the oil supermajor, which also has significant plans in the liquefied natural […]

Oil Sands Rebound in 2019

The Canadian oil industry could be in for another turbulent year in 2019, depending on how some pivotal events pan out. Government-mandated production cuts and the potential startup of a key crude pipeline are among key developments to watch for next year. Here’s a look at each one: Production Curtailments While the announcement of production […]

Drilling in Arctic National Wildlife Refuge One Step Closer

The U.S. Department of the Interior has taken another step towards allowing oil and gas drilling in Alaska’s Arctic National Wildlife Refuge by issuing a draft environmental impact statement for the leasing program proposed for the 1002 Area (coastal plain). In 2017, Congress mandated the U.S. Secretary of the Interior to establish a program for […]

Nigeria To Run Out Of Oil In 52 Years

Nigeria To Run Out Of Oil In 52 Years, Says DPR If new crude oil discoveries are not made to add to Nigeria’s current reserves of 36.971 billion barrels (bbls), the country will run out of oil in about 52 years, the Department of Petroleum Resources (DPR) has disclosed. The DPR also explained that the […]

Saudi Energy Minister Confident that OPEC+ Will Extend Cuts in 2019

OPEC, Russia and other oil producers will continue to trim production next year to balance the market, according to Saudi Arabian Energy Minister Khalid Al-Falih. “We will meet in April and I’m certain that we will extend it,” Al-Falih told reporters in Riyadh, referring to the next meeting of OPEC+ members to discuss whether to […]

Oil Plunge Threatens to Leave Even Parts of Permian Under Water

The plunge in U.S. oil prices has wells in some parts of the Permian Basin below break-even levels, threatening to put the brakes on the record flow from the prolific field. Oil produced from the Permian in Midland, Texas, is now trading below $40 a barrel for the first time since August 2016, according to […]

Mexico Targets 50% Jump in Oil Output

Mexico aims to lift oil and gas production by almost 50 percent in the next six years and in January will award infrastructure and drilling contracts to develop 20 fields, state oil firm Petroleos Mexicanos said on Saturday. Octavio Romero, chief executive officer of the company generally known as Pemex, said the new government would […]

Market Could be Oversupplied by 2020

The market could be quite tight in the first half of 2019 but oversupplied again by 2020, according to a new industry note from Jefferies, which was sent to Rigzone on Thursday. “The combination of OPEC+ cuts, curtailments in Canadian production and further sanctions-related declines in Iranian exports should be sufficient to drive OECD inventories […]

US to ‘end 2018 as world’s top oil producer’

U.S. crude oil output growth was expected to slow slightly for this year compared with previous forecasts, the Energy Information Administration said on Tuesday, but at a record 10.88 million barrels per day, the nation will end 2018 as the world’s top producer. Output this year was forecast to rise 1.53 million bpd to 10.88 […]

Saudi oil output at 11.1 Mmbpd in Nov.

Saudi Arabia’s oil minister Khalid Al-Falih said Friday the kingdom produced 11.1 million barrels per day (Mmbpd) in November, but should reduce production by 400,000 Bpd in December amid lower demand, Kallanish Energy reports. Speaking at a press conference in Vienna after the 5th Opec/Non-Opec meeting, Al-Falih said loadings for December were falling and customers were being notified […]

Permian Oil Reserves May Be Twice As Big As We Thought

The U.S. Geological Survey has revised the technically recoverable reserves in the Wolfcamp Basin, in the Permian shale play, to 46.3 billion barrels of crude and 281 trillion cu ft of natural gas. That’s up from 20 billion barrels of crude and 16 trillion cu ft of gas in recoverable reserves in late 2016. It’s […]

Saudi America Continues Energy Dominance

In 1956, geologist M. King Hubbert presented a paper to the American Petroleum Institute in which he warned that new reserve discoveries failed to keep up with the rate of fossil fuel consumption. Hubbert accurately predicted the domestic production peak of the 1970s, making him synonymous with the term “peak oil.” However, he failed to […]

What OPEC+ Must Do for Oil to go Above $70 in 2019

OPEC+ countries must cut 2019 supply growth by 1.5 million barrels per day if they want oil prices back above $70 per barrel next year, according to Rystad Energy. “We believe a cut announcement that effectively removes anything less than one million barrels per day of 2019 supply would be interpreted negatively by the market,” […]

Jean Laherrère: Thoughts on the Future of World Oil Production

I have spent my professional career as a geologist-geophysicist involved in oil and gas exploration on every continent, and have been an active participant in the peak oil debate during the past quarter century (petroleum geologist Colin Campbell and I were instrumental in initiating that debate via our article, “The End of Cheap Oil” published […]

The Saudi Dilemma: To Cut Or Not To Cut

To cut and push up prices or not to cut and preserve market share, this is the question that Saudi Arabia is facing ahead of this year’s December OPEC meeting. It seems like just yesterday when OPEC met in 2016 and decided to cut production by 1.8 million barrels daily, including from Russia, to reverse […]

Saudis Won’t Cut Oil Production On Their Own

Saudi Arabia is going to do whatever it takes to stabilize the oil market, but it can’t and won’t do it alone without a collective decision from the OPEC and non-OPEC deal participants, Saudi Energy Minister Khalid al-Falih said on Wednesday. “We are going to … do whatever is necessary, but only if we act […]

At G20, oil kingpins try to fix a new fiasco

Yet again, energy experts have gotten the oil market wrong: Less than two months ago, Brent crude was about $86 a barrel, and the talk was a certain return to ultra-profitable $100 oil. Today, Brent closed at $58.68, down 31% from the peak, after the industry’s worst two months in a decade. Oil’s biggest kingpins […]

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LATEST NEWS HEADLINES

• IEA Sees Oil Demand Growth Defying Economic Slowdown  
• GREAT AGAIN: US Oil Output to Exceed Saudi Arabia ‘At Their Peak’ in Six Months
• Fracking in 2018: Another Year of Pretending to Make Money
• Art Berman: Exposing The False Promise Of Shale Oil  
• 2019 US Oil Output to Average 12MM Barrels Per Day

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• A billion barrels: BP expands Gulf work
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