This week, we take a look at some of the most importanr figures put out in the energy sector over the last seven days. With the release of the IEA’s World Energy Outlook, there is no shortage of data from which to analyze trends in oil and gas over the coming weeks and months.
Let’s take a look.
Upstream oil and gas investment falls off a cliffLow oil prices are forcing companies to scramble. Upstream investment has been getting the axe, with total investment dollars falling by 20 percent this year from 2014 levels.This will affect long-term production levels, but the effects on production have largely not yet been felt.
U.S. shale on the declineShale production is affected much more quickly than conventional oil fields.U.S. oil production continues to take a hit, with the major shale regions expected to post month-on-month declines. The EIA sees the Eagle Ford suffering the worst, projecting a loss of 78,000 barrels per day in December. Natural gas production is also showing several months of decline. The nation’s most prolific formation, the Marcellus, is expected to decline by 229 million cubic feet per day in December, suggesting that U.S. gas production has peaked for now.
Global oil reserves and productionThe chart above beautifully illustrates the world’s still overwhelming dependence on the Middle East for oil, notwithstanding…