U.S. Oil Glut An EIA Invention?

In the latest weekly production data from the EIA, on the back of recent March revisions, the U.S. managed to post a 76,000 barrel per day increase in the lower 48. Production from Alaska fell by 61,000 barrels per day, putting overall U.S. output 15,000 barrels per day higher for the week ending June 12 […]

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Expect A Wave Of Consolidation In The Oil Industry

As stated previously, asset monetization by small E&P operators will start in earnest in the second half of this year out of cash flow necessity. Most, if not all, smaller market capitalization companies, public or private, are still free cash flow negative (operating cash flow less capital expenditure) and only a few of the larger […]

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How Much Energy Does The Super Bowl Use?

In the pantheon of American culture, no event is more iconic and distinctly American than the Super Bowl. Like all things American, the Super Bowl is huge, expensive, and a source of incredible passion for fans. Just running a 30-second commercial to the more than 100 million people that watch the game costs nearly $5 […]

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The Dark Side Of The Shale Bust

The fallout of the collapse in oil prices has a lot of side effects apart from the decline of rig counts and oil flows. Oil production in North Dakota has exploded over the last five years, from negligible levels before 2010 to well over a million barrels per day, making North Dakota the second largest […]

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Are US Drillers Actually Making A Comeback?

Is US shale about to make a comeback? Oil prices have rebounded strongly since March. The benchmark WTI prices soared by more than 36 percent in two months, and Brent has jumped by more than 25 percent. There is a newfound bullishness in the oil markets – net long positions on Brent crude have hit […]

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World Liquid Fuel Consumption and Production

Here’s What Will Send Oil Prices Back Up Again

Oil’s rapid decline since August of last year has been dramatic. To listen to some commentators you would also think it is unprecedented and irreversible. Those claiming that oil will continue to fall from here and remain low for evermore, however, are flying in the face of both history and common sense. The question we […]

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The Easy Oil Is Gone So Where Do We Look Now?

In 2008, Canadian economist Jeff Rubin stunned the oil market with a bold prediction: With the world economy growing at 5 percent a year, oil demand would grow with it, outpacing supply, thus lifting the oil price from $147 to over $200 a barrel. The former chief economist at CIBC World Markets was so convinced […]

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Is Oil Returning To $100 Or Dropping To $10?

If you have been following the price of oil over the last few months, the chances are you’re a little confused. On the one hand you have the likes of A. Gary Shilling who, in this Bloomberg article, loudly trumpets the prospect of oil at $10/Barrel, and on the other there is T. Boone Pickens, […]

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Why Oil Prices Must Go Up

It may be difficult to look beyond the current pricing environment for oil, but the depletion of low-cost reserves and the increasing inability to find major new discoveries ensures a future of expensive oil. While analyzing the short-term trajectory of oil prices is certainly important, it obscures the fact that over the long-term, oil exploration […]

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Valle del Río Chubut by Lisandro Moises

Soros Signals Argentina’s Shale is Biggest Place to Be

One of the world’s legendary investors is upping his bet on Argentina’s shale oil and gas industry in a show of confidence for shale production in South America’s largest unconventional prize —and a big boost for both supermajors and smaller players making big waves in the heart of new discovery areas. George Soros has doubled […]

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