• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 2 hours The Political Debacle: Brexit delayed
  • 4 hours No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 6 hours Trump sells out his base to please Wallstreet and Oil industry
  • 5 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 13 hours Tidal Power Closer to Commercialisation
  • 3 hours New Rebate For EVs in Canada
  • 14 hours Will Trump Cave Again
  • 15 hours Read: OPEC THREATENED TO KILL US SHALE
  • 14 hours Solar to Become World's Largest Power Source by 2050
  • 4 hours Biomass, Ethanol No Longer Green
  • 2 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 20 hours Oil stocks are heating up again! What's on your Watchlist?
  • 20 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months

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,…




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