• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 20 mins Joe Biden's Presidency
  • 26 mins Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 2 hours So Is COVID a Media Hoax or Not?
  • 1 min China sends warplanes thru Taiwan airspace. Joe's reponse . . . .
  • 28 mins a In 2020, we produced and delivered half a million cars.
  • 1 min The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 6 hours Parler’s New Partner Has Ties to the Russian Government
  • 8 hours Thanks to food countersanctiona after 2014 Russia become net exporter of food
  • 4 hours GENERAL NORMAN SCHWARZKOPF: The Third Tour
  • 1 hour JACK MA versus Xi Jinping
  • 4 hours Minerals, Mining and Industrial Ecology
  • 17 hours Did I Miss Something?
  • 21 hours The Debate Starts : Remake Republican Party vs. Third Party

Oil Storage Levels Point to Lower for Longer

Friday, February 26, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. OPEC’s war on shale yields results

(Click to enlarge) 

- Much has been made about the ability of U.S. shale companies to weather the downturn in oil prices, and in turn, a lot of commentary has argued that OPEC’s strategy since 2014 has failed.
- But the price crash has had an enormous impact on production figures. Not only has U.S. oil output declined from a peak of 9.6 million barrels per day (mb/d) in April 2015 to below 9.3 mb/d by November 2015, but a more important metric is to measure the decline against a business-as-usual case from mid-2014 when prices began to decline.
- If U.S. production had continued to climb at the pre-June 2014 rate, Reuters analyst John Kemp notes, U.S. production would have reached 11 mb/d by November 2015. In other words, the Saudi strategy of pursuing market share and forcing out high-cost producers knocked at least 1.6 or 1.7 mb/d of American oil offline, a very substantial volume.
- Moreover, output is still falling. The IEA sees U.S. production falling by another 600,000 barrels per day this year.
- In short, the U.S. shale industry has proven to be resilient, but OPEC…




Oilprice - The No. 1 Source for Oil & Energy News