Posted on 12/19/2022 2:36:21 PM PST by george76
The recent crude price slump may not be indicative for what is to come in oil markets according to several investment bank analysts.
OPEC has not consistently produced more than 30 million bpd since 2015-2018.
Structural underinvestment in new oil supply may lead to structurally higher prices.
...
In its latest monthly report, OPEC revealed it had yet again failed to produce as much oil as it agreed to produce the last time it discussed output. And it wasn’t by a few thousand barrels per day, either. The shortfall was some 1.8 million barrels daily, but more importantly, that sort of undershooting of its own target has become a regular thing for the cartel.
Meanwhile, the United States federal government needs to buy some oil for its strategic petroleum reserve after releasing close to 200 million barrels from it this year
...
“We remain constructive on oil prices driven by recovering demand (China reopening, aviation recovering) amid constrained supply due to low levels of investment, risks to Russia supply, the end of SPR releases, and slowdown of U.S. shale,” Morgan Stanley said this week
...
“Global oil inventory is at the lowest level since 2004, the Department of Energy has released 200 million barrels of oil from the Strategic Petroleum Reserve this year, OPEC continues to struggle to produce at their stated quota and US producers are helping but can only do so much.”
...
U.S. oil production is unlikely to ever again record annual output increase rates of 1 million bpd or more, as it did in the recent past. A growth rate of 500,000 to 750,000 bpd is far more likely, he believes. And that’s not good news for consumers because demand, although targeted by the energy transition camp, is not going down soon.
(Excerpt) Read more at oilprice.com ...
Thanks to the Joe Biden cabal.
Only because they banned fracking and cancelled the pipeline. Purposeful government interference in the free market by the democrat party voters.
Oh BS
Get the Ratz and their Watermelon contingent outta the way and production goes right back up where Trump had it
“OPEC revealed...” can’t be taken seriously.
US oil production is dependent on who is calling the shots.
Only because our rulers want it that way.
If that is true, and it's still sliding, what does that mean?
Oh, peak oil again? Didn’t we already play this game back in 2008?
Stop it! We’ve heard this before!
joma89: Only because they banned fracking.
The US pumped a record amount of natural gas in 2022. 2023 will be even greater. They are doing more fracking than ever.
As soon as a sane government (cough*Trump*cough) is elected, the spice oil will flow again.
The oil is still in the ground and isn’t going anywhere. Infrastructure can be rebuilt/updated given the financial incentive.
Related….perversely
Back in the early 70’s we were told the same thing.
Then in the 80’s
Then in the 90’s
Then global warming hit the stage and suddenly a lack of oil became an opportunity for political advancement and funding, an ideological mandate worthy of PT Barnum’s greatest dream.
Each time it came down to a political decision, not a factual look at the reserves and the ones we keep finding when we get serious about looking for them.
Saving it up for when China needs it.
It’s still cheap. It’s the taxes that are driving up the price.
Post #3 -- nailed it.
Add: The Biden Administration is funding oil production in ... VENEZUELA! One corrupt Admin backing another!
Just by idiotic policy, not lack of supply.
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