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Art Berman: Think Oil Is Getting Expensive? You Ain’t Seen Nothing Yet.
Art Berman: Think Oil Is Getting Expensive? You Ain’t Seen Nothing Yet. A global supply crunch approaches… After issuing clear warnings on this program that sub-$50 oil prices were going to be short-lived, oil expert and geological consultant Art Berman returns to the podcast this week to explain why today’s $70 oil prices will go […]
The Problem with EIA Shale Gas and Tight Oil Forecasts
The Problem with EIA Shale Gas and Tight Oil Forecasts Each year the U.S. Energy Information Administration (EIA) produces forecasts of U.S. oil and gas production in its Annual Energy Outlook (AEO), which is widely viewed as an authoritative assessment of what to expect for future U.S. oil and gas output (the EIA prefers the […]
Why We Can Expect Cripplingly Higher Oil Prices In The Near Future
Why We Can Expect Cripplingly Higher Oil Prices In The Near Future The break-even price for Permian basin tight oil plays is about $61 per barrel (Table 1). That puts Permian plays among the lowest cost significant supply sources in the world. Although that is good news for U.S. tight oil plays, there is a […]
Can We Afford the Future?
Can We Afford the Future? Broken road image via shutterstock. Reproduced at Resilience.org with permission. As a child of the 1950s I grew up immersed in a near-universal expectation of progress. Everybody expected a shiny new future; the only thing that might have prevented us from having it was nuclear war, and thankfully that hasn’t happened […]
Too Many Wildcards For Oil Markets To Settle Yet
Too Many Wildcards For Oil Markets To Settle Yet Could the price of oil be a value such that the current quantity produced exceeds the current quantity consumed? The answer is yes, and indeed that has been the case for much of the past year. Suppose, for illustration, that even at a price of $40, […]
Tight Oil Reality Check
Tight Oil Reality Check Much of the cost-benefit debate over fracking has come down to the perception of just how much domestic oil and gas it can produce and at what cost. To answer this question, policymakers, the media, and the general public have typically turned to the U.S. Department of Energy’s Energy Information Administration (EIA), which […]
The Shale Delusion: Why The Party’s Over For U.S. Tight Oil
The Shale Delusion: Why The Party’s Over For U.S. Tight Oil The party is over for tight oil. Despite brash statements by U.S. producers and misleading analysis by Raymond James, low oil prices are killing tight oil companies. Reports this week from IEA and EIA paint a bleak picture for oil prices as the world production surplus continues. EIA […]
Where In The World Is The Shale Gas Revolution?
Where In The World Is The Shale Gas Revolution? As it stands the global shale gas revolution is missing in action. To be sure, its impact in the United States – and the subsequent ripple worldwide – was nothing short of game-changing, but the wave of enthusiasm has yet to produce substantial results outside of […]
The Bakken ”Red Queen” is restrained with more credit
The Bakken ”Red Queen” is restrained with more credit This post is an update on Light Tight Oil (LTO) extraction in Bakken based upon published data from the North Dakota Industrial Commission (NDIC) as per March 2015. Extraction developments of LTO from Bakken may be followed by county, formation, vintage of wells, and one important source […]
This May Just Be The Start Of The Oil Price War Says IEA
This May Just Be The Start Of The Oil Price War Says IEA Saudi Oil Minister Ali al-Naimi may be one of the most powerful individuals in the global oil industry. After all, as the top oil official in arguably the world’s most influential oil-producing country, he has enormous influence. But for all his power, […]
The U.S. Production Decline Has Begun
The U.S. Production Decline Has Begun It is not because of decreased rig count. It is because cash flow at current oil prices is too low to complete most wells being drilled. The implications are profound. Production will decline by several hundred thousand of barrels per day before the effect of reduced rig count is fully […]
8 States Dealing With Huge Increases in Fracking Earthquakes
8 States Dealing With Huge Increases in Fracking Earthquakes A new report, released Thursday from the U.S. Geological Survey (USGS), identified eight states in the eastern and central U.S. where fracking operations have led to dramatic increases in earthquakes, primarily from the injection of the wastewater byproduct of drilling operations into underground wells. This process can activate faults that in […]
The EIA Is Bizarrely Optimistic About Future US Oil Production
The EIA Is Bizarrely Optimistic About Future US Oil Production The EIA came out with its final update of Annual Energy Outlook 2015. It seems that the EIA is extremely optimistic concerning future US crude oil production. Here is a comparison with AEO 2014. The EIA still expects US crude production to peak in 2019 but […]
OPEC Says US Oil Boom Will End This Year
OPEC Says US Oil Boom Will End This Year OPEC says the demand for oil – its oil – will rise during 2015 because the cartel is winning its price war against US shale producers by driving them out of business. “Higher global refinery runs, driven by increased [summer] seasonal demand, along with the improvement […]
