• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 12 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 20 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 21 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days An Indian Opinion on What is Going on in China
  • 2 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 1 day Nord Stream - US/German consultations
  • 2 days Can Technology Keep Coal Plants Alive and Well?
  • 3 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 3 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 5 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 2 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 2 days Storage of gas cylinders
U.S. Oil Stocks Are Seriously Undervalued Right Now

U.S. Oil Stocks Are Seriously Undervalued Right Now

Oil prices have rallied more…

Brent Crude Nears $85 As Global Energy Crisis Worsens

Brent Crude Nears $85 As Global Energy Crisis Worsens

Oil prices extended Friday’s rally…

Russia Predicts U.S. Oil Output Will Drop By 2-3 Million Bpd

U.S. oil production could decline this year by 2 million bpd-3 million bpd, due to limited storage capacity and low oil prices, Russia’s Deputy Energy Minister Pavel Sorokin told local media on Wednesday.  

“We see that the production drop in the United States may range from 2 to 3 mln barrels daily this year either on account of storage capacities filling or merely because it is not possible for certain companies to work in the conditions of the price being $30-35 [per barrel], to say nothing of $20 [per barrel],” Sorokin said in an interview with the Roscongress Foundation carried by TASS.   

Apart from large production cuts in the United States, curtailments in Canada could top 800,000 bpd, so those two North American producers could provide between 2.8 million bpd and 4 million bpd of cuts from producers that are not part of the OPEC+ pact, Sorokin said.

For the United States, Rystad Energy expected in mid-April that oil production would drop by 1.5 million bpd by the end of 2020. Around that time, Wood Mackenzie expected U.S. Lower 48 supply to be 2.6 million bpd below its pre-price collapse forecasts for end 2021. The 2.6-million-bpd drop through 2021 assumes that in response to the lower oil price, operators would cut more than 100 rigs from the Permian basin by the end of May 2020 and over 200 rigs, or 25 percent, across all plays by the end of June.

Related: Why Russia Finally Accepted Deeper Oil Output Cuts

In total, low oil prices could force 4 million bpd of non-OPEC supply out of the market, WoodMac’s Global Oil Supply team has estimated.

According to Russia’s deputy energy minister Sorokin, global commercial oil inventories could start declining in the third quarter this year if countries begin to ease the lockdowns.

The OPEC+ pact participants are motivated to cut production because the “penalty” in the absence of actions is a new market collapse, and no one is interested in that, Sorokin said.

Referring to Russia’s uneasy task to cut 2 million bpd as part of the OPEC+ deal, he said that Moscow expects to achieve “the maximum reduction level as soon as practicable.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Maxander on May 07 2020 said:
    Far more production cuts would come from America ahead as White House banned areas for oil drilling would start showing lower production levels ahead post 2020 elections.
    Roughly 30% of America's recoverable oil reserves have been put on permanent ban due to clean waters, wild life protection acts. With recent covid 19 pandemic impact on America which extremely huge & largest in world, would necessitates the need for cleaner waters in America.
    That oil will not be drilled even if oil prices touch any high level.
    Having said that I think around 8-10 mn bpd that could be America's oil production level for many many years to come, significantly down from peak of 13 mn bpd.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News