Posted on 04/04/2015 3:25:06 PM PDT by thackney
U.S. oil production is on track to reach an annual all-time high by September of this year, according to Rystad Energy.
If production does indeed top out, then supply levels may soon hit a peak as well. That, in turn, could lead to shrinking supplies.
The oil-and-gas consulting-services firm estimates an average 2015 output of 9.65 million barrels a day will be reached in five months topping the previous peak annual reading of 9.64 million barrels a day in 1970.
Coincidentally, the nations crude inventories stand at a record 471.4 million barrels, based on data from U.S. Energy Information Administration, also going back to the 1970s.
The staggering pace of production from shale drilling and hydraulic fracturing have been blamed for the 46% drop in crude prices last year. But reaching so-called peak production may translate into a return to higher oil prices as supplies begin to thin.
Rystad Energys estimate includes crude oil and lease condensate (liquid hydrocarbons that enter the crude-oil stream after production), and assumes an average price of $55 for West Texas Intermediate crude oil. May WTI crude settled at $49.14 a barrel on Friday.
The forecast peak production level in September is also dependent on horizontal oil rig counts for Bakken, Eagle Ford and Permian shale plays stabilizing at 400 rigs, notes Per Magnus Nysveen, senior partner and head of analysis at Rystad.
Of course, in this case, hitting peak production isnt assured.
(Excerpt) Read more at marketwatch.com ...
Bunker #2....
Was with friends in OK City back in mid-70s. One of them was a manager at a storage facility near Broken Arrow.
Asked him about the oil "shortage" since I was young and naive. He bout died of laughter.
"Son, ain't no oil shortage, my tanks are all full and my orders are to sell all I can and take orders for more".
That was one of those days when the real world starts to reveal itself.
I looked at the principal’s resume and it appears a bit shady(philosophy? Astroseismology?), so I am unsure whether too much trust should be given this firm.
“holds an M.Sc. degree in Physics from the Norwegian University of Science and Technology, where he majored with a thesis on astroseismology. He also has an academic background in philosophy. Jarand has been the leader and founder of various organizations.”
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