They’re ignoring the oil that’s a byproduct of natural gas drilling. Especially the wells that produce the higher profit wet components such as propane, butane, ethane, etc. The crude oil is being removed by collection services once the holding tanks near the well head are full. That oil production is not related to market price. It’s a bonus in a sense.
They’re ignoring the oil that’s a byproduct of natural gas drilling.
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Yeah there’s a lot of that. Its what often makes natural gas wells profitable.
But imho they do have an interesting point that Iranian oil production may well drive down the price of oil.
I’m in favor of that happening but not until US oil production has made the USA oil independent. That won’t happen until 2018 at the earliest—and then oil production has to increase by 1 million barrels@ day every year between now and 2018.
Oil production increased by 1 million barrels @ day in 2013 and likely it will do so in 2014 and 2015.
For oil production to keep up that rate of growth in 2016-2018— The massive fields in the permian basin with 1000 foot pay streaks will have to be fracked and the oil moved to market.
That’s definitely in the cards. But who knows. Maybe increased production in other parts of the world will put too much new supply on the market and kill prices early We’ll see.