• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 9 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 1 hour Socialists want to exorcise the O&G demon by 2030
  • 5 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 15 hours Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 4 hours Maritime Act of 2020 and pending carbon tax effects
  • 20 hours Chevron to Boost Spend on Quick-Return Projects
  • 20 hours Conspiracy - Theory versus Reality
  • 1 day UK, Stay in EU, Says Tusk
  • 1 day What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 1 day German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 1 day Regular Gas dropped to $2.21 per gallon today
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

This is the Oil Trade You Should be Making

Here it is, in one monumental and telling graph – the point on energy you must remember:

Yes, there is demand drop in the US, Europe and Japan but it is miniscule and even 25 years from now will amount to less than a million barrels a day of total liquids consumption. Meanwhile, demand growth from China, India and the Middle East ALONE will increase close to 20 million barrels a day.

Now, let me give you a second chart; the one that I believe most energy watchers are relying upon to offset chart number one:

Here’s the most graphic representation I’ve found of the magical, monster increase in shale oil production in the US – a fantastic revolution of technology and applied capital, but which has amounted to less than a 3 million barrel a day increase since tight oil recovery became widespread here in the US less than 5 years ago.  

And if you look at the areas of major growth, the Bakken and Eagle Ford, you’re sure to get suspicious of the trajectory of this second graph.  Already you’ve had numerous analysts and even CEO’s of oil companies (EOG’s Mark Papa being the most outspoken) saying that the great US shale plays have already been picked over and the peak of their production potential is not that far off.  This graph, in other words, is shortly about to flatten it’s top.

You’d find it hard to say the same for graph number one, unless you were an out-of-touch…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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