tita wrote:AdamB wrote:shortonoil wrote:There is no new oil coming on line, and at $44/ barrel there won't be.
Stop making it so obvious to prove you know nothing about the oil industry.
The Permian Basin has increased oil production from 1.8 mbpd in Jan of 2015 to 2.0 mbpd right around now.
Try looking up a fact every once in awhile, you make this far too easy.
The Permian increased production, indeed, but overall US shale production decreased.
And you expected a price response to be...negative? The Permian is able to increase because folks are able to make money and increase production, contradicting shortonoils assumption, for what his lack of experience in the industry is worth. The shale development in higher cost areas is obviously responding to price just like economists predict.
And guess what happens when price increases? Why, the same price response that repeaked the US in oil and gas production here in the last couple years. Amazing how price goes up and PRESTO! More supply. I wonder how many times this sine wave of increasing and decreasing production can go on?
tita wrote:But also, since Jan 2015 shale added 2mbpd of new production, which can't balance the depletion of legacy wells. It's utterly wrong to say there is no new oil coming online.
I agree. Shortonoil can't even be bothered to look up the facts prior to inserting foot in mouth.
This production decline is necessary to dispense the current glut, or demand must continue to increase. In either case, supply and demand will rebalance at a price, and if production continues to decline without a corresponding increase in supply, price increases, and guess what happens next? Shale development 2.0!
Plant Thu 27 Jul 2023 "Personally I think the IEA is exactly right when they predict peak oil in the 2020s, especially because it matches my own predictions."
Plant Wed 11 Apr 2007 "I think Deffeyes might have nailed it, and we are just past the overall peak in oil production. (Thanksgiving 2005)"