{"id":55356,"date":"2020-10-18T07:33:50","date_gmt":"2020-10-18T12:33:50","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55356"},"modified":"2020-10-18T07:33:50","modified_gmt":"2020-10-18T12:33:50","slug":"u-s-oil-production-has-already-passed-its-peak-occidental-says","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55356","title":{"rendered":"U.S. Oil Production Has Already Passed Its Peak, Occidental Says"},"content":{"rendered":"<div class=\"lede-wrap\">\n<div class=\"lede-text-v2 lede\">\n<div class=\"lede-text-v2__container\">\n<div class=\"lede-text-v2__content\">\n<h3 class=\"lede-text-v2__hed\"><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-10-14\/u-s-oil-production-has-already-passed-its-peak-occidental-says\">U.S. Oil Production Has Already Passed Its Peak, Occidental Says<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-well-v2\">\n<section class=\"main-column-v2\">\n<div class=\"body-columns\">\n<div class=\"middle-column\">\n<div class=\"body-copy-v2 fence-body\">\n<aside class=\"content-accessories content-accessories--left-rail\">\n<div class=\"blens\">\n<div class=\"datastrip datastrip__c0b5bbd3 blens__cb47e381\">\n<div class=\"instruments__c06d06c1\">\n<div class=\"showMore__86f8d892 item__5fd87d4b blens__75a2494c  negative__3467c923\">\n<div class=\"itemAbsoluteChange__ce70ead1 negative__3467c923\">America\u2019s oil production will never again reach the record 13 million barrels a day set earlier this year, just before the pandemic devastated global demand, according to Occidental Petroleum Corp.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p>\u201cIt\u2019s just going to be too difficult to replace the 2 million barrels a day of production that we\u2019ve lost, and then to further grow beyond that,\u201d Chief Executive Officer Vicki Hollub said Wednesday at the Energy Intelligence Forum. \u201cOver the next three to four years there\u2019s going to be moderate restoration of production, but not at high growth.\u201d<\/p>\n<p>Occidental is one of the biggest producers in the U.S. shale industry, which added wells at such a rate prior to the spread of Covid-19 that the country became the world\u2019s top crude producer, overtaking Saudi Arabia and Russia, ushering in an era that President Donald Trump called \u201c<a title=\"Link to statement\" href=\"https:\/\/www.whitehouse.gov\/briefings-statements\/president-donald-j-trump-unleashing-american-energy-dominance\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">American energy dominance<\/a>.\u201d<\/p>\n<figure id=\"231\" class=\"figure-expandable\" data-align=\"center\" data-id=\"365291933\" data-image-size=\"full\" data-image-type=\"chart\" data-type=\"image\">\n<div class=\"image\" tabindex=\"0\" role=\"button\" aria-label=\"Open image in viewer\">\n<div id=\"lazy-img-365291933\" class=\"lazy-img\"><img decoding=\"async\" class=\"lazy-img__image loaded\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iiIwgtBAk764\/v2\/490x-1.png\" alt=\"U.S. oil production is stuck below it's pre-pandemic high\" data-native-src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iiIwgtBAk764\/v2\/-1x-1.png\" data-img-type=\"chart\" \/><\/div>\n<\/div>\n<\/figure>\n<p>Shale\u2019s debt-fueled expansion came to a juddering halt due to lower gasoline demand and oil prices, but also because of Wall Street\u2019s increasing reluctance to fund growth at any cost. Shale operators are increasingly prioritizing cash flow and returns to investors over production growth.<\/p>\n<p>Occidental, which vies with Chevron Corp. to be the biggest producer in the Permian Basin, has been forced to throttle back capital spending, lower growth targets and cut its dividend in a bid to save cash during the downturn. Its finances were already severely challenged by the debt taken on through its $37 billion purchase of rival\u00a0<a title=\"Company Overview\" href=\"https:\/\/www.bloomberg.com\/quote\/APC:US\">Anadarko Petroleum Corp.<\/a>\u00a0last year.<\/p>\n<p>Hollub said global consumption stands at about 94 billion barrels a day, and it will take a Covid-19 vaccine before it returns to 100 million barrels. Due to cutbacks around the world, supply and demand for oil will likely balance again by the end of 2021, she said.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Oil Production Has Already Passed Its Peak, Occidental Says America\u2019s oil production will never again reach the record 13 million barrels a day set earlier this year, just before the pandemic devastated global demand, according to Occidental Petroleum Corp. \u201cIt\u2019s just going to be too difficult to replace the 2 million barrels a day [&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":[5752,30472,30473,617,13669,7252,827,1474],"class_list":["post-55356","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-bloomberg-news","tag-kevin-crowley","tag-occidental","tag-peak-oil","tag-peak-oil-demand","tag-peak-oil-production","tag-united-states","tag-us-oil-production"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55356","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=55356"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55356\/revisions"}],"predecessor-version":[{"id":55357,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55356\/revisions\/55357"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}