{"id":17474,"date":"2016-02-08T12:12:44","date_gmt":"2016-02-08T17:12:44","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17474"},"modified":"2016-02-08T12:12:44","modified_gmt":"2016-02-08T17:12:44","slug":"oil-production-is-going-to-drop-and-oil-prices-are-likely-to-increase","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17474","title":{"rendered":"Oil Production Is Going To Drop And Oil Prices Are Likely To Increase"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/peakoilbarrel.com\/oil-production-is-going-to-drop\/\" target=\"_blank\">Oil Production Is Going To Drop And Oil Prices Are Likely To Increase<\/a><\/h3>\n<div class=\"entry-meta\"><strong><a href=\"http:\/\/www.rystadenergy.com\/\">Rystad Energy<\/a><\/strong>,\u00a0an independent oil and gas consulting services and business intelligence data firm in Oslo, Norway, has online, a wealth of information concerning upstream oil production projects and costs. Some of it is a bit dated but some of their charts date from late 2015.<\/div>\n<\/header>\n<div class=\"entry-content\">\n<p>The two below Rystad charts were published by\u00a0<strong><a href=\"http:\/\/money.cnn.com\/interactive\/economy\/the-cost-to-produce-a-barrel-of-oil\/index.html?iid=EL\">CNN Money<\/a><\/strong>\u00a0on November 23, 2015.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11553\" src=\"http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Overall.jpg\" sizes=\"auto, (max-width: 806px) 100vw, 806px\" srcset=\"http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Overall-300x230.jpg 300x, http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Overall-768x589.jpg 768x, http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Overall.jpg 806x\" alt=\"Costs, Overall\" width=\"806\" height=\"618\" \/><\/p>\n<p>This is overall\u00a0or average cost, not marginal cost. It cost Canada $41 to produce a barrel of oil but only cost Russia $17.20. I guess that is why Canada is cutting back but Russia is not.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11554\" src=\"http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Breakdown.jpg\" sizes=\"auto, (max-width: 804px) 100vw, 804px\" srcset=\"http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Breakdown-300x229.jpg 300x, http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Breakdown-768x587.jpg 768x, http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Costs-Breakdown.jpg 804x\" alt=\"Costs, Breakdown\" width=\"804\" height=\"614\" \/>\u00a0Here is the breakdown between capital expenditures and operational expenditures. Why would the United Kingdom\u2019s operational expenditures be two and one half times those of Norway? After all, they are both drilling basically the same oil field.<\/p>\n<p>So why is not the price of oil having a more dramatic effect on production? Well it is, it just takes a while. Here are some plans from about a year and a half ago, when the price of oil was much higher.<\/p>\n<p>Rystad published the two below charts in their\u00a0<strong><a href=\"http:\/\/www.rystadenergy.com\/AboutUs\/NewsCenter\/Newsletters\/UsArchive\/us-q1-2015\">US Shale Newsletter<\/a><\/strong>\u00a0in January 2015 but the data dates from the 4th quarter of 2014, just as the price of oil had started to drop.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11557\" src=\"http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Cost-per-Play.jpg\" sizes=\"auto, (max-width: 777px) 100vw, 777px\" srcset=\"http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Cost-per-Play-300x193.jpg 300x, http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Cost-per-Play-768x494.jpg 768x, http:\/\/peakoilbarrel.com\/wp-content\/uploads\/2016\/02\/Cost-per-Play.jpg 777x\" alt=\"Cost per Play\" width=\"777\" height=\"500\" \/><\/p>\n<p>At that time Bakken (ND) had a break even price of $53 while Eagle Ford oil had a break even price of $42 and Eagle ford condensate a break even price of $50.<\/p>\n<p>The below chart, from the same newsletter,<strong>\u00a0assumes $90 a barrel oil<\/strong>.<\/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 Is Going To Drop And Oil Prices Are Likely To Increase Rystad Energy,\u00a0an independent oil and gas consulting services and business intelligence data firm in Oslo, Norway, has online, a wealth of information concerning upstream oil production projects and costs. Some of it is a bit dated but some of their charts date [&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":[1775,595,596,6245,6074],"class_list":["post-17474","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-oil-price-collapse","tag-oil-production","tag-oil-supply","tag-peak-oil-barrel","tag-ron-patterson"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17474","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=17474"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17474\/revisions"}],"predecessor-version":[{"id":17475,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17474\/revisions\/17475"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}