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Robert Rapier: The U.S. Oil Supply Is Still Out Of Balance

Robert Rapier: The U.S. Oil Supply Is Still Out Of Balance thumbnail

You may find it curious that the price of oil is still above $80 a barrel. This is also why gasoline prices are at the highest levels since 2014. But, there is a good explanation for it.

In January 2020, just before the Covid-19 pandemic began to sweep across the U.S., domestic oil production was 12.8 million barrels per day (BPD). Production remained at that level for a couple of months despite the double-whammy of a price war between Saudi Arabia and Russia, and growing demand destruction as a result of the Covid-19 pandemic.

But the situation was untenable. The price of oil eventually fell to zero and then kept going. That forced some producers into bankruptcy, resulting in the largest short-term oil production drop in U.S. history.

Production declined all the way to 9.7 million BPD in May 2020 (which was the month after oil prices went negative), but has since bounced back to 11.3 million BPD.

Meanwhile, U.S. oil demand has jumped back above 21.8 million BPD, which is where it was prior to the Covid-induced plunge. This loss of supply and recovery of demand is the biggest reason we have $80/bbl oil today when it was only $60/bbl just before the pandemic.

The loss of supply has caused the U.S. to lose its briefly-held status as a net exporter of petroleum and petroleum products. That number had trended down from a high of 13 million BPD of imports in 2005 all the way to over a million BPD of exports in 2020. Now we have returned to net importer status, most recently importing a net average of 1.3 million BPD over the past four weeks.

But there are some signs that help may be on the way. In January 2020 there were nearly 700 rigs drilling for oil in the U.S. By the summer of 2020, that number had fallen below 200. The rig count has steadily recovered over the past year to reach 445 — the highest level since the pandemic started.

The downside is that it can take months at a minimum for new drilling activity to turn into oil production. So don’t rush out and buy that gas guzzler just yet.

Forbes



111 Comments on "Robert Rapier: The U.S. Oil Supply Is Still Out Of Balance"

  1. makati1 on Sat, 30th Oct 2021 5:19 pm 

    BTW: The ‘wooden stake’ is the Amerikan economy. What a cluster fuck! But fun to watch from here. Pass the steamed shrimp and beer! ^_^

  2. FamousDrScanlon on Sat, 30th Oct 2021 6:23 pm 

    clog’s always comparing the decline in America to past euro-trash events in a twisted attempt to form a cozy ‘brothership’ with what he imagines are mutual feelings towards his big laundry list of people he hates.

    You still don’t understand Americans. They will never accept you.

    Pro tip: the people you want to connect with – you’ll have to dumb yourself down like Tucker Carlson does. You know what Carlson thinks of his viewers? Uncouth Morons who are beneath him. Almost all the US establishment media is cynical. Politicians & big bureaucrats too. They are there for one reason only – to increase their wealth & status. There is one group they hate more than the plebs – each other.

    “Tucker Carlson’s annual salary at Fox is $6 million.

    Rachel Maddow’s annual MSNBC salary was $7 million. In August 2021 she signed a new contract with MSNBC that reportedly upped her salary to $30 million”

    They pay them to tell the truth. They’re just like everyday people.

    Control one of these outfits & you can make yourself a saint & your enemies devils. Can make your friends look good or save corporate reputations (eg:Boeing) with damage control.

    Only fucking dupes watch MSM. TV makes you dumb or dumber. Before social media there was network TV.

    You watch. Soon they’ll start the 2024 election theater & they will once again dupe hundreds of millions into believing a meaningless election is the most important event in human history.

    If Trump had won in 2020 nothing of importance would be different. 2024 don’t matter. US collapse was locked in decades ago.

    Nothing in Euro land matters either.

    There’s a few different roads humans can take, but they all go to the same bad place.

  3. makati1 on Sat, 30th Oct 2021 6:34 pm 

    Just checked the thermometer on the porch. 81 degrees F at 7:30 AM. The sun is shining. The flowers are blooming. The birds are singing, and everything is green. Typical day here in the land of eternal summer. ^_^

  4. Biden’s hairplug on Sat, 30th Oct 2021 11:26 pm 

    “If Trump had won in 2020 nothing of importance would be different. 2024 don’t matter. US collapse was locked in decades ago.“

    That’s all I want to hear, buddy.

    You realize yourself that despite all your talk over super jews this and super jews that, in the end of the day it is all bluster and that your tribe is presiding over a train wreck and soon your club will be burried.

    https://documents1940.wordpress.com/2019/01/07/the-good-news-zog-is-dying/

    “The Good News – ZOG Is Dying“

  5. Biden's hairplug on Sun, 31st Oct 2021 6:21 am 

    “Just checked the thermometer on the porch. 81 degrees F at 7:30 AM. The sun is shining. The flowers are blooming. The birds are singing, and everything is green. Typical day here in the land of eternal summer. ^_^”

    You like high temperatures, eh?

    Well, you might be right at the right spot then, because soon temperatures are going to be MUCH higher in your hood:

    https://www.military.com/2019/02/22/day-we-saved-2147-pows-los-banos-prison.html

  6. makati1 on Sun, 31st Oct 2021 5:01 pm 

    Biden’s: Yep! I prefer keeping cool to freezing my balls off. Few die from heat but many die from freezing cold.

    I don’t need FFs to live in the winter season, which does not exist here. You do. I don’t chip ice off my windshield anymore or shovel snow. I enjoy a temperature range of lower 70s to low 90s with a few days hotter, but they are rare. Cooler days are even more rare and never below 60F.

    As for your warmongering, I will take my chances here vs the hell hole the US already is. With this flu bullshit and ant fucker dictating your life, it is declining faster than ever towards communism/fascism/oligarchy/dictatorship. It never was a democracy.

  7. sPECIES 8472 of MUZZIES did JetBlue Flight 261 CELEBRATES SUPERTARD MADKAT on Mon, 1st Nov 2021 6:12 pm 

    SUPERTARRD KAT is honorary PhD – among the smartest who does not not MUZZ-19 away with reckless abandon

    pleaes feel at ease among friends, we’re all lovers of supremacist muzzies here.

  8. Weareallnomadsnow on Mon, 1st Nov 2021 11:58 pm 

    Huge capital projects to develop oil reserves have been put on hold for the last few years. Big oil is hesitant to reinvest in new production but will focus on curbing emissions. That is if they can get the public taxpayer to fund these projects. Either way oil will become more dear and high prices at the pump are here to stay. The era of driving big urban assault vehicles will come to an end.

  9. elite whitey (((supertard))) MUZZ-19 away with reckless abandon on Tue, 2nd Nov 2021 12:15 am 

    After Israeli GIRL COLLAPSES From Pfizer SHOT, Bystander WARNS EVERYONE

    LorettaJoy222 bitchute
    First published at 06:01 UTC on October 31st, 2021.

    sPECIES 8472 of muzzie did JetBlue Flight 261 CELEBRATES ELITE WHITEY (((SUPERTARD))) ALICE
    SHE DOES NOT MUZZ-19 AWAY WITH RECKLESS ABANDON

    PhDs are the most educated and they don’t MUZZ-19 away with reckless abandon

    please feel at ease among friends, we’re all lovers of supremacist muzzies here

  10. MUZZ-19 away with reckless abandon is a new holochristianity the number of elite whitey (((supertards))) who MUZZ-19 away with reckless abandon is huge on Tue, 2nd Nov 2021 12:21 am 

    elite whitey (((supertards))) don’t believe in invisible (((supremetard))) they only believe in invisible “never isolated” convict-19

    your humble tard and former paultard observed many elite whitey (((supetards))) who are simply mediocre in many ways became instant experts in convict-19. this explains the MUZZ-19 with reckless abandon

    elite whitey (((supertard))) MUZZ-19 away with reckless abandon on Tue, 2nd Nov 2021 12:15 am

    After Israeli GIRL COLLAPSES From Pfizer SHOT, Bystander WARNS EVERYONE

    LorettaJoy222 bitchute
    First published at 06:01 UTC on October 31st, 2021.

  11. elite whitey supertard MUZZ-19 away with reckless abandon and WENT TO SAINT PETERS on Tue, 2nd Nov 2021 12:28 am 

    The COVID World post date: November 1st, 2021

    ALLEGHENY COUNTY, PENNSYLVANIA

    ELITE WHITEY (((supertard))) REM wrote this:

    Here’s a little agit for the never-believer yeah, yeah, yeah, yeah. Here’s a little ghost for the offering yeah, yeah, yeah, yeah. Here’s a truck stop instead of Saint Peter’s

    [!!! THIS IS WHERE ELITE WHITEY SUPERTARD IS AT!!! ]

    yeah, yeah, yeah, yeah.

    please feel at ease among friends, we’re all lovers of supremacist muzzies here.

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