vtsnowedin wrote:I don't see anything shocking about this. .
Observerbrb wrote:vtsnowedin wrote:I don't see anything shocking about this. .
You'll might be shocked if you learnt that the EIA was adamantly denying that the US oil production declined in January just a week ago... Why are they acting in this way?
ROCKMAN wrote:c-a: Yes, it's really foolish and indicates either no understanding of the dynamics I just described or they are just chumming for publicity. The significant drop in the growth of US oil production is guaranteed by the fall in rig count alone. That understanding requires no knowledge of geology, frac'ng or any other tech aspect: it's simple math: production boomed with 1600 rigs and won't boom with 700.
After slashing production for months, U.S. shale-oil companies say they are ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices.
Last week, EOG Resources Inc. said it would ramp up output if U.S. prices hold at recent levels, while Occidental Petroleum Corp. boosted planned production for the year. Other drillers said they would open the taps if U.S. benchmark West Texas Intermediate reaches $70 a barrel. WTI settled at $60.50 Wednesday, while global benchmark Brent settled at $66.81.
An increase in U.S. production, coupled with rising output by suppliers such as Russia and Brazil, could put a cap on the 40% rally in crude prices since March and even push them lower later in the year, some analysts say.
Observerbrb wrote:http://www.bloomberg.com/news/articles/2015-05-11/america-s-shale-oil-production-decline-seen-accelerating-in-june
Oil production decline in May: 55,000 bpd
Oil production decline in June: 86,000 bdp
It seems to me that the Oil decline started this May and its gaining traction, as Rockman forecast.
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