{"id":17403,"date":"2016-02-04T12:28:13","date_gmt":"2016-02-04T17:28:13","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17403"},"modified":"2016-02-04T12:28:13","modified_gmt":"2016-02-04T17:28:13","slug":"oil-production-vital-statistics-january-2016","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17403","title":{"rendered":"Oil Production Vital Statistics January 2016"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/euanmearns.com\/oil-production-vital-statistics-january-2016\/\" target=\"_blank\">Oil Production Vital Statistics January 2016<\/a><\/h3>\n<div class=\"entry-meta\">Market fundamentals point to chronic over-supply of crude oil throughout 2016. The technicals point to the makings of an oil price rally. A strong price rally from current levels may\u00a0extend the situation of chronic over-supply that may have a debilitating impact\u00a0on the oil price and the oil industry for years to come.<\/div>\n<div class=\"entry-content\">\n<p align=\"center\"><a href=\"http:\/\/www.euanmearns.com\/wp-content\/uploads\/2016\/02\/oilprice2feb16b.png\" target=\"_blank\"><img decoding=\"async\" src=\"http:\/\/www.euanmearns.com\/wp-content\/uploads\/2016\/02\/oilprice2feb16b.png\" alt=\"\" width=\"80%\" \/><\/a><\/p>\n<p><em><strong>Figure 1<\/strong>\u00a0The oil price has\u00a0seen a lot of action since the last report. As anticipated, support in the vicinity of $40 did not hold and the price moved sharply lower in January. WTI hit $26.68 and Brent $26.01 on January 20th. Since then there has been a cyclical rally. More on the future direction of the oil price at the end of this report.<\/em><\/p>\n<p>This article first appeared on\u00a0<a href=\"http:\/\/euanmearns.com\/oil-production-vital-statistics-january-2016\" target=\"_blank\">Energy Matters<\/a>.<br \/>\n<span id=\"more-12287\"><\/span><\/p>\n<p><a href=\"http:\/\/www.eia.gov\/dnav\/pet\/pet_pri_spt_s1_m.htm\" target=\"_blank\">EIA oil price<\/a>\u00a0and\u00a0<a href=\"http:\/\/www.bakerhughes.com\/rig-count\" target=\"_blank\">Baker Hughes rig count<\/a>\u00a0charts are updated to the end\u00a0of January\u00a02016, the remaining oil production charts are updated to December\u00a02015 using the\u00a0<a href=\"https:\/\/www.iea.org\/oilmarketreport\/omrpublic\/\" target=\"_blank\">IEA OMR<\/a>data.<\/p>\n<p align=\"center\"><a href=\"http:\/\/www.euanmearns.com\/wp-content\/uploads\/2016\/02\/oilprice2feb16.png\" target=\"_blank\"><img decoding=\"async\" src=\"http:\/\/www.euanmearns.com\/wp-content\/uploads\/2016\/02\/oilprice2feb16.png\" alt=\"\" width=\"100%\" \/><\/a><\/p>\n<p><em><strong>Figure 2<\/strong>\u00a0The\u00a0bigger picture shows\u00a0how price support has been busted . The lower dashed line shows the lows reached in 1998. On a deflated basis that works out at around $15 in today\u2019s money.<\/em><\/p>\n<p align=\"center\"><a href=\"http:\/\/www.euanmearns.com\/wp-content\/uploads\/2016\/02\/rigcountjan16.png\" target=\"_blank\"><img decoding=\"async\" src=\"http:\/\/www.euanmearns.com\/wp-content\/uploads\/2016\/02\/rigcountjan16.png\" alt=\"\" width=\"100%\" \/><\/a><\/p>\n<p><em><strong>Figure 3<\/strong>\u00a0The US oil and gas rig count has continued its steep decline, but as yet this has not shown up in significant falls in US production. The situation remains complicated by large numbers of drilled and uncompleted wells coming on line. At some point the fall in drilling must show up in sharply lower production. But with 498 rigs still drilling oil and 121 rigs drilling gas (+associated liquids) there is still a lot of new production to substantially offset steep declines in LTO\u00a0wells.<\/em><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Oil Production Vital Statistics January 2016 Market fundamentals point to chronic over-supply of crude oil throughout 2016. The technicals point to the makings of an oil price rally. A strong price rally from current levels may\u00a0extend the situation of chronic over-supply that may have a debilitating impact\u00a0on the oil price and the oil industry for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[11260,11842,1775,595,12228],"class_list":["post-17403","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-energy-matters","tag-euan-mearns","tag-oil-price-collapse","tag-oil-production","tag-us-oil-and-gas-rig"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17403"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17403\/revisions"}],"predecessor-version":[{"id":17404,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17403\/revisions\/17404"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}