02-16-2015, 12:20 AM
From the trough in May 2009 to its peak in October 2014, rigs drilling for oil soared from 180 to 1,609: multiplied by a factor of 9 in five years! And oil production soared, to reach 9.2 million barrels a day in January.
Fracking has collapsed - Business Insider
The US Energy Information Administration reported that crude oil inventories (excluding the Strategic Petroleum Reserve) rose by another 4.9 million barrels last week to 419.9 million barrels – the highest level in the weekly data going back to 1982. These weekly storage reports have been relentlessly terrible for months.
Oil price debacle continues - Business Insider
OPEC is supposedly out to beat, or at least curtail the growth of American shale oil production. For a host of reasons, especially the much shorter capex cycle for shale, they will not succeed unless they are willing to accept permanent low oil prices. But, permanent low oil prices will do too much damage to OPEC economies for this to be a credible threat.
OPEC Can't Kill American Shale | Seeking Alpha
Oil closed up for a second straight week on Friday after another drop in the US rig count, and Brent crude hit a 2015 high above $60 a barrel, but market skeptics cautioned the rally could fade because supplies keep coming. Many traders and analysts believe there is a global oversupply of nearly two million barrels per day of crude oil.
Oil tops $60 for first time in 2015 -Upstreamonline.com
The simplest argument for the oil price decline is for once correct. A wave of new U.S. fracking oil could be seen to be overtaking the modestly growing global oil demand. It became clear that OPEC, mainly Saudi Arabia, must cut back production if the price were to stay around $100 a barrel, which many, including me, believe is necessary to justify continued heavy spending to find traditional oil.