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Page added on March 13, 2019

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US Slashes Oil Production Forecast

Production

The U.S. government cut its oil production forecast for the first time in six months as drillers scale back in smaller shale plays and the U.S. Gulf of Mexico.

While crude output is still expected to reach record levels, the Energy Information Administration trimmed its 2019 forecast to 12.3 million barrels a day — 110,000 barrels-a-day lower than it had forecast previously. In 2020, production is expected to reach 13.03 million barrels a day — 170,000 barrels a day lower than last month’s estimate.

“This is just the beginning,” said Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago. “The reality of the situation is that a lot of these guys are not making money and are having a hard time keeping these production levels up. Any pullback is going to make it harder to keep that upward trajectory of oil production moving higher.”

The U.S. rig count tumbled to a 10-month low last week, suggesting the rate of production growth could slow, the EIA said in its monthly Short-Term Energy Outlook. Most of the growth expected through 2020 will come from the Permian basin of West Texas and New Mexico, rather than smaller shale plays, the report said.

“One of the common themes was ‘Let’s not drill this space as hard as we can and let’s try to return cash to shareholders instead,’” said Bob Yawger, director of the futures division at Mizuho Securities USA in New York. “I think maybe that message played to the EIA and they cut the production number here a little bit.”

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6 Comments on "US Slashes Oil Production Forecast"

  1. Anal Reap on Wed, 13th Mar 2019 12:11 pm 

    I will slash my anal sex forecast on all of your wives as well!

    Fucking faggots.

  2. twocats on Wed, 13th Mar 2019 4:39 pm 

    Price has been trending upwards since the lows as the Fed has walked back to neutral and may even be signalling renewed easing. In addition, China is continuing stimulus packages.

    But, a big but –
    No one believes any of these markets are self-sustaining, and if the spigot is shut off commodities (more than many categories) are going to get hammered. why would companies risk drilling in that environment?

  3. twocats on Wed, 13th Mar 2019 4:40 pm 

    sorry – lows in Late December 2018. Not much of a “trend”

  4. makati1 on Wed, 13th Mar 2019 6:05 pm 

    “US Slashes Oil Production Forecast”

    Exactly why I do not bother to read most oily articles. They are ALL guesses that will change with the wind. Price up! Price down! Peak far away! Peak yesterday! Anything that is more than a year in the future is reading gopher guts, not reality. Even tomorrow is a guess.

  5. Free Speech Message Board on Wed, 13th Mar 2019 9:29 pm 

    How would you feel if you lived in a collapsing bankrupt warmongering police state and didn’t know what to do, didn’t know what to say, and had no one to tell?

  6. makati1 on Wed, 13th Mar 2019 11:07 pm 

    Free, I don’t know. Ask Davy or MOB. They are enjoying those “freedoms”. LOL

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